Starwood claims Hilton CEO knew employees were spying

January 18, 2010 |

In an amended complaint filed in a federal court in New York, Starwood said Hilton chief executive Christopher Nassetta knew that two Hilton employees were sifting confidential information from Starwood and using it to create a new hotel chain.

Starwood Hotels & Resorts Worldwide accused dozens of Hilton Worldwide executives of stealing trade secrets, escalating a battle of alleged corporate spying between the rival hoteliers.

In an amended complaint filed in a federal court in New York, Starwood said Hilton chief executive Christopher Nassetta knew that two Hilton employees were sifting confidential information from Starwood and using it to create a new hotel chain.

The amended complaint is the latest twist in the lawsuit between Starwood, the world's eighth-largest by hotel rooms, and McLean-based Hilton, the fourth-largest. Starwood sued Hilton in April, saying two of the company's executives, Ross Klein and Amar Lalvani, developed a new group of hotels for Hilton called Denizen, using a confidential formula crafted by Starwood.

Get the full story at The Washington Post

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