Grand jury calls for release of documents
Two senior executives accused of unlawfully obtaining document have been suspended by Hilton Hotels Corporation.
The global chain said Ross Klein, its global head of luxury and lifestyle brands, Amar Lalvani, its global head of luxury and lifestyle brand development and members of their team had all been put on "paid administrative leave pending Hilton's review of the situation."
Hilton said development of its new boutique brand Denizen for which Mr Klein and Mr Lalvani were responsible was "temporarily suspended."
The hotel company also confirmed the receipt of a sub-poena from the grand jury from the US Attorney's Office for the Southern District of New York.
It called for the release by Hilton of documents relating to the employment of former staff from Starwood Hotels.
Both Mr Klein and Mr Lalvani and some members of their team previously worked for Starwood on the development of its W brand boutique hotel.
Mr Klein and Mr Lalvani joined Hilton last year to help with the development of the Denizen brand.
Starwood issued a writ against Hilton, Mr Klein and Mr Lalvani last week alleging "corporate espionage."
The writ accused Hilton, Mr Klein and Amar Lalvani of stealing thousands of documents relating to Starwood's W boutique brand.
It claims the three parties "stolemassive amounts of proprietary and highly confidential Starwood information which was used to expedite Hilton's entry into the lifestyle hotel market, reposition its luxury brands and substantially reduce its costs and risks of doing so."
Hilton has already returned hundred of thousands of documents relating to the case to Starwood.
It said last week that Starwood's claim was "without merit."
www.starwoodhotels.com www.hilton.com