UPDATE 1-Hilton gets subpoena over Starwood spying claims
* Hilton gets subpoena for files linked to Starwood suit
* Denizen Hotels brand temporarily suspended
* Two Hilton executives, luxury team on paid leave
NEW YORK, April 21 (Reuters) - Hilton Hotels Corp said on Tuesday it received a federal grand jury subpoena for documents related to allegations that the company and two executives stole documents from rival Starwood Hotels & Resorts (HOT.N: Quote, Profile, Research) to develop Hilton's luxury brand, Denizen Hotels.
The privately held Hilton also said it has decided to suspend temporarily the development of its Denizen brand. It did not elaborate on why it was suspending development of Denizen.
Hilton received a subpoena from the U.S. Attorney's Office for the Southern District of New York requesting documents related to the two executives, Ross Klein and Amar Lalvani.
The subpoena also requested documents related to materials that Hilton returned to Starwood in February of 2009, the company said.
Klein and Lalvani spearheaded Hilton's attempts to launch Denizen Hotels, a luxury line intended to be Hilton's answer to Starwood's W Hotels chain. Klein served as head of luxury and lifestyle brands, and Amar Lalvani was head of development for the segment.
Last week, Starwood sued Klein, Lalvani and Hilton for corporate espionage, accusing its former employees of stealing trade secrets to expedite Hilton's foray into the "lifestyle" market. For details, see [ID:nN16293349] Continued...
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