The Wall Street Journal reports that Hilton settled a corporate espionage suit brought against it by Starwood.
Hilton hired two former Starwood executives who allegedly stole over 100,000 documents belonging to Starwook outlining many of Starwood’s key marketing plans and ideas for liefstyle chains such as W. Hilton settled the case for an unspecified cash payment along with an agreement banning it from starting a luxury lifestyle chain for two years.
The article concludes that by settling now, Hilton avoids having to deal with the ban on developing a lifestyle luxury hotel chain once the economy heats up again:
Hilton’s delay in developing a lifestyle hotel came at a convenient time given that new hotel construction is at its lowest level in years. In the future, the two-year delay could become a problem as the industry emerges from the recession, industry observers said Wednesday. It could leave a hole in Hilton’s marketing to young-minded travelers seeking a high dollar hotel option.
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Our Chicago non-compete agreement and trade secret theft lawyers have defended high level executives in cases with similar claims to the Hilton case. We have also prosecuted and defended many trade secret theft and covenant not to compete cases. A case in which our firm defended a former Motorola executive was covered in Crain’s Chicago business. You can view that article by clicking here.
Lubin Austermuehle handles trade secret theft lawsuits and litigation over non-compete clauses for individuals and businesses of all sizes, including small or closely held businesses for whom competition from an ex-employee can be a serious threat. Our Chicago business attorneys have substantial experience in trade secret, restrictive covenant and breach of contract cases, and we are proud of our record of strong results.
DiTommas-Lubin a Chicago business law firm represents both plaintiffs and defendants in such cases, and can also help stop litigation before it starts by reviewing contracts to look for covenants and clauses that could create problems later. Based in Oakbrook Terrace and downtown Chicago, our Schaumburg noncompete clause lawyers take cases from Wheaton, Naperville and many other cities throughout Illinois, as well as in Indiana, Wisconsin and the entire United States. To learn more or set up a free consultation, please contact us through the Internet or call toll-free at (833) 306-4933 today.