In Corporate Espionage Suit, Hilton and Starwood Talk Settlement

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In Corporate Espionage Suit, Hilton and Starwood Talk Settlement

By Jay Boehmer

NOVEMBER 25, 2009 -- Starwood Hotels & Resorts Worldwide and Hilton Hotels Corp. are "exploring the possibility of settlement" in a lawsuit alleging that two former Starwood executives used proprietary information to expedite Hilton's launch of a luxury lifestyle brand.

After Starwood filed the suit (BTNonline, April 17), Hilton suspended development of its Denizen hotel brand and placed the two former Starwood Luxury Brands Group executives accused of stealing trade secrets on paid administrative leave.

The suit appeared headed toward trial, as demanded by Starwood, but in a court filing last week, Charles Gilman, a lawyer for Cahill Gordon & Reindel, which represents Starwood, asked the judge to postpone a hearing set for Nov. 18 until the week of Dec. 14, noting that "the parties have been exploring the possibility of settlement."

A Hilton spokesperson this week said the company has no further comment "beyond the document that was filed last week." Similarly, a Starwood spokesperson offered "no comment at this time."

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