Just when you thought it was safe to trade in your cash and credit cards for Google Wallet, PayPal and eBay launch a lawsuit to stop Google in its tracks. A day after Google launched its new mobile e-payment service, PayPal and eBay filed a lawsuit alleging that Google's new payment service was the result of some shady corporate dealings.

The lawsuit claims that Google used trade secrets from PayPal's own mobile-payment business in Google Wallet. The trade secrets were allegedly obtained from former PayPal execs Stephanie Tilenius and Osama Bedier who jumped ship to become Google's VP of Commerce and VP of "payments" respectively. According to a Bloomberg report the complaint states that "Bedier and Google have misappropriated PayPal trade secrets by disclosing them within Google and to major retailers."

Google and PayPal were reportedly working together for years on a payment system where PayPal would be the checkout system for Google Android's platform. The lawsuit also claims that Google reneged on that deal and Bedier who was leading the negotiations with Google on making PayPal a payment option on Google's Android Market was also looking at a position with Google. Bedier transferred "up-to-date versions of documents outlining PayPal's mobile payment and point of sale strategies to his non-PayPal computer just days before leaving PayPal for Google on Jan 24, 2011" and that Bedier has since repeatedly refused to return "trade secret information." Tilenius was under contract with eBay not to recruit employees after leaving in 2009 contacted Bedier thru Facebook telling him about 'HUGE' opportunity for him and offered him advice.

PayPal wants an injunction to prevent Google from using trade secrets, compensatory damages, royalty on the trade secrets, and further restitution. The case will be tried in the County of Santa Clara, California Superior Court.