On The Heels of Google Wallet Announcement, PayPal Files Lawsuit Alleging Theft of Trade Secrets
May 27, 2011 10:20 AM –
On the heels of Google’s new mobile payment announcement yesterday, PayPal filed a lawsuit in California state court. The suit, according to Bloomberg, alleges that Google misappropriated trade secrets from PayPal’s mobile- payment business, and that Osama Bedier, a former PayPal executive now at Google, stole PayPal’s confidential information. PayPal also alleges that Stephanie Tilenius, another ex-PayPal executive now at Google, violated contractual obligations by recruiting Bedier.
Bedier “is now leading Google’s efforts to bring point of sale technologies and services to retailers on its behalf,” PayPal said in the complaint. “Bedier and Google have misappropriated PayPal trade secrets by disclosing them within Google and to major retailers.”
In addition to the theft of trade secrets, PayPal also alleges that Bedier, who left the company in January, discussed a job with Google while simultaneously leading negotiations to make PayPal a payment option on Google’s Android Market. He didn’t disclose the job-related talks, a breach of his fiduciary duty, the company said.
Tilenius, who left eBay in 2009, was under contract not to recruit employees, PayPal said. She messaged Bedier on Facebook Inc.’s social-networking Web site, telling him she had a “HUGE” opportunity for him, and sent him e-mails and text messages offering advice while he interviewed for a position, according to the complaint.
The case is PayPal v. Google Inc., 11CV201863, California Superior Court, County of Santa Clara (San Jose).