A legal battle between HR tech rivals Rippling and Deel has taken a dramatic turn, with new allegations of corporate espionage surfacing in court documents. Rippling has publicly released an affidavit from a former employee, Keith O’Brien, who claims he was recruited by Deel’s leadership to act as an internal informant in exchange for financial compensation.
Allegations of Espionage and Data Theft
According to the affidavit, O’Brien, who worked in Rippling’s global payroll and compliance department, was approached by Deel’s CEO, Alex Bouaziz, and CFO, Philippe Bouaziz. The document alleges that instead of resigning from Rippling, O’Brien was offered €5,000 per month, some of it paid in cryptocurrency, to secretly gather intelligence on Rippling’s internal operations.
Over four months, O’Brien reportedly accessed and shared confidential company data, including sales leads, product roadmaps, customer details, and other proprietary information. The lawsuit claims that in one day, O’Brien leaked data on hundreds of potential Rippling customers.
Rippling’s Counteraction and the Sting Operation
Rippling alleges that it identified O’Brien’s activities through an internal investigation and subsequently set a trap. The company’s legal team reportedly sent a letter to Deel’s leadership, referencing a fabricated Slack channel, “d-defectors,” in which sensitive information was supposedly being discussed. According to the lawsuit, O’Brien searched for the channel shortly after the letter was sent, confirming Rippling’s suspicions.
The affidavit states that when confronted at Rippling’s office, O’Brien attempted to destroy evidence. He allegedly reset his phone in a restroom, later smashed another phone with an axe, and was advised by Deel representatives to relocate to Dubai to avoid extradition.
Legal Battle and Industry Response
Following these revelations, Rippling filed a lawsuit against Deel, citing violations of the Racketeer Influenced and Corrupt Organizations (RICO) Act, misappropriation of trade secrets, and unfair competition. Deel has denied any wrongdoing, with a company spokesperson stating that the allegations are an attempt to deflect from Rippling’s legal challenges.
Rippling’s attorney, Alex Spiro, has described the case as “undeniable,” asserting that Deel’s leadership played a direct role in the alleged scheme. Meanwhile, industry figures, including Eynat Guez, CEO of competitor Papaya Global, have voiced concerns that such incidents may not be isolated within the sector.
Implications for the Tech Industry
The case highlights the intensifying competition in the HR tech space, where companies are increasingly leveraging AI-driven solutions to gain market dominance. As the lawsuit unfolds, it raises broader questions about corporate ethics, data security, and the measures companies take to protect their intellectual property.
The legal proceedings between Rippling and Deel are ongoing, with potential ramifications for the industry as a whole.A legal battle between HR tech rivals Rippling and Deel has taken a dramatic turn, with new allegations of corporate espionage, including a corporate spy, surfacing in court documents. Rippling has publicly released an affidavit from a former employee, Keith O’Brien, who claims he was recruited by Deel’s leadership to act as an internal informant in exchange for financial compensation.
Allegations of Espionage and Data Theft
According to the affidavit, O’Brien, who worked in Rippling’s global payroll and compliance department, was approached by Deel’s CEO, Alex Bouaziz, and CFO, Philippe Bouaziz. The document alleges that instead of resigning from Rippling, O’Brien was offered €5,000 per month, some of it paid in cryptocurrency, to secretly gather intelligence on Rippling’s internal operations. This included logging into the workforce management platform to view sensitive company data.
Over four months, O’Brien reportedly accessed and shared confidential company data, including sales leads, product roadmaps, customer details, and other proprietary information. The lawsuit claims that in one day, O’Brien leaked data on hundreds of potential Rippling customers. This unauthorized access was reportedly conducted via shared source files and potentially other electronic devices.
Rippling’s Counteraction and the Sting Operation
Rippling alleges that it identified O’Brien’s activities through an internal investigation and subsequently set a trap. The company’s legal team reportedly sent a letter to Deel’s leadership, referencing a fabricated Slack channel, “d-defectors,” in which sensitive information was supposedly being discussed. According to the lawsuit, O’Brien searched for the channel shortly after the letter was sent, confirming Rippling’s suspicions.
The affidavit states that when confronted at Rippling’s office, O’Brien attempted to destroy evidence. He allegedly reset his phone in a restroom, later smashed another phone with an axe, and was advised by Deel representatives to relocate to Dubai to avoid extradition. Furthermore, the lawsuit mentions O’Brien attempted to delete time cards and expense reports to cover his tracks.
Legal Battle and Industry Response
Following these revelations, Rippling filed a lawsuit against Deel in San Francisco federal court, citing violations of the Racketeer Influenced and Corrupt Organizations (RICO) Act, misappropriation of trade secrets, and unfair competition. Deel has denied any wrongdoing, with a company spokesperson stating that the allegations are an attempt to deflect from Rippling’s legal challenges.
Rippling’s attorney, Alex Spiro, has described the case as “undeniable,” asserting that Deel’s leadership played a direct role in the alleged scheme. Meanwhile, industry figures, including Eynat Guez, CEO of competitor Papaya Global, have voiced concerns that such incidents may not be isolated within the sector. This sentiment is further echoed by the legal team speculating on potential future litigation involving similar cases.
Implications for the Tech Industry
The case highlights the intensifying competition in the HR tech space, where companies are increasingly leveraging AI-driven solutions within their business applications to gain market dominance. As the lawsuit unfolds, it raises broader questions about corporate ethics, data security, and the measures companies take to protect their intellectual property, including crucial documents like time cards and customer paystubs.
The legal proceedings between Rippling and Deel are ongoing, with potential ramifications for the industry as a whole. This high-profile case not only captures the industry's attention but also serves as a profound example of the lengths companies might go to to maintain a competitive edge.
