PayPal Sues Google for Stealing Trade Secrets

Osama Bedier, vice president of payments at Google Inc., speaks at an event in New York, U.S., on Thursday, May 26, 2011. Google Inc. unveiled a service to let consumers pay merchants and download coupons with a tap of their mobile phones, as the Internet search giant seeks to expand in the growing market for mobile advertising. Photographer: Guy Calaf/Bloomberg via Getty Images Photo: Bloomberg/2011 Bloomberg

We told you the mobile payments battle was getting heated, but we didn't know it was getting ugly. PayPal has filed a lawsuit alleging that Osama Bedier, a former PayPal exec now at Google, stole confidential information. The lawsuit also alleges that Stephanie Tilenius, the Google VP who led the demo of the Google Wallets app yesterday, violated contractual obligations by recruiting Bedier. According to the filing, Bedier discussed a job at Google while leading negotiations for Google to use PayPal as a payment option in Android. EBay, which owns PayPal and used to employ Tilenius, says they made her sign a contract not to recruit their employees. But the suit says Tilenius messaged Bedier on Facebook telling him she had a "HUGE" opportunity for him. Using Google's rival social site and all caps? That is unprofesh.

PayPal Sues Google Over Mobile Payment Secrets [Bloomberg]
Earlier: Google’s New App Will Let You Pay for Things With a Tap of Your Phone