Dunkin' executive settles with Starbucks

Reportedly to pay $500,000 after jumping ship

Tim Klass

Seattle The Associated Press

Competition between Starbucks Coffee Co. SBUX-Q and Dunkin' Donuts has gone beyond mochas and lattes, to corporate executives.

Paul Twohig of Hilton Head, S.C., a former Starbucks senior vice president who jumped ship to work for Dunkin', reportedly is paying $500,000 to settle a lawsuit. According to the Seattle company, he also promised not to share Starbucks' trade secrets with Dunkin' or to start work before Jan. 15.

Starbucks sued Oct. 5 after Mr. Twohig took a job as brand operations officer for Dunkin', a division of Dunkin' Brands Inc. of Canton, Mass. Mr. Twohig had been in charge of Starbucks retail operations in the southeastern U.S., and the company accused him of violating a non-competition agreement.

Mr. Twohig's lawyer, Paul R. Taylor, did not immediately return a call for comment Wednesday.

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