Hilton Worldwide has agreed to business restrictions for two years as part of a settlement of a lawsuit concerning its trade secrets dispute with Starwood Hotels & Resorts Worldwide.
"Hilton Worldwide regrets the circumstances surrounding the dispute with Starwood Hotels & Resorts Worldwide and is pleased to bring an end to this prolonged litigation," Hilton Chief Executive Officer Christopher Nassetta said in a statement.
The dispute began in April 2009, when Starwood accused Ross Klein and Amar Lalvani, who joined Hilton from Starwood to start a new brand for the former, of taking hundreds of thousands of documents with them.
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The pair was tasked with developing a new Hilton hotel line called Denizen, using confidential information from Starwood, according to the suit filled.
Under the terms of the settlement an independent will ensure that Hilton does not use Starwood information set out under the agreement. It also forbids Hilton from buying or franchising any Starwood Lifestyle Brand hotel that Starwood operates.
Furthermore, it also bars Hilton for two years from hiring any Starwood employee for its Hilton Luxury & Lifestyle Brands Group.
Additionally, it forbids Hilton from launching a brand similar to Denizen.
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