Grand Jury Probes Hilton, Execs

Hilton Worldwide and several of its former executives could face criminal charges over allegedly stealing documents from rival Starwood Hotels, the Wall Street Journal reports.

The Journal, citing unnamed sources, says a grand jury is investigating whether Hilton, owned by private equity firm Blackstone, used documents pilfered by executives who defected to Hilton from Starwood to replicate Starwood’s successful high-end W hotel brand.

Criminal indictments against major corporations are rare, but prosecutors from the U.S. Attorney’s Office in Manhattan are taking an aggressive line in this case, the Journal reports. The grand jury is also investigating Steven Goldman, Hilton’s president of global development and real estate, who was placed on leave last month and isn’t expected to return to the company. Ross Klein and Amar Lalvani, former Starwood employees who moved to Hilton, are also under investigation.

Of course, the grand jury may decide not to indict anyone in the case, and prosecutors may or may not prosecute. Such a decision is expected within the next two months.

Starwood earlier this year sued Hilton, claiming the two employees helped Hilton develop a luxury brand to be called Denizen. The Denizen brand is to be a destination emphasizing relaxation for business and leisure travelers.

Among the allegations Starwood made in the suit: Hilton’s plan to use “Den of Zen” as a catchphrase, while Starwood had planned to use “zen den” for its W brand.