Wall Street Journal Reports: Hilton Settles Corporate Espionage Suit Brought Against it By Starwood

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.

To readthe full article click here.

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.

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