Google sued by PayPal over wallet program


Google execs Stephanie Tilenius, and Osama Bedier are both former PayPal employees named in the suit for violating their agreements with their former employer. (Guy Calaf/BLOOMBERG)

But just as the announcement dropped, PayPal reopened some old wounds with Google.

PayPal filed a suit in California Thursday alleging that Google and former PayPal executive Osama Bedier “misappropriated PayPal trade secrets” related to mobile payments. Bedier left PayPal for Google in January, and the online payment service has leveled some pretty heavy accusations saying that he kept his job search secret while negotiating a deal between PayPal and Google.

“During that time, PayPal provided Google with an extensive education in mobile payments,” the company says in its lawsuit. “Bedier was the senior PayPal executive accountable for leading negotiations with Google on Android during this period. At the very point when the companies were negotiating and finalizing the Android-PayPal deal Bedier was interviewing for a job at Google — without informing PayPal of this conflicting position.

Bedier was recruited by Google VP of Commerce Stephanie Tilenius, a former PayPal employee who has also been named in the suit for breaking her contractual agreement not to solicit and recruit PayPal employees.

Bedier and Tilenius were both on hand to unveil Google’s new Google Wallet program.

In response to the lawsuit, Google said that the company respects trade secrets and will defend itself against the claims.

"Silicon Valley was built on the ability of individuals to use their knowledge and expertise to seek better employment opportunities, an idea recognized by both California law and public policy,” a Google spokesperson said in an e-mailed statement.

Related stories:

Google Wallet, Google Offers unveiled at event

Google Wallet: Search giant introduces automatic cellphone payment system

Google Offers will be beta testing in select markets

Hayley Tsukayama covers consumer technology for The Washington Post.

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