Rippling Escalates Lawsuit, Accuses Deel of "Criminal Syndicate"
The legal battle between HR tech rivals Rippling and Deel intensifies. Rippling filed an amended 84-page complaint accusing Deel of orchestrating a "criminal syndicate" to steal trade secrets from Rippling and four other competitors.
Rippling Alleges Espionage Against Multiple Competitors
The amended complaint identifies Toku, a cryptocurrency-based tax and payroll compliance company, as one of the alleged victims. Toku is currently suing competitor LiquiFi, also alleging corporate espionage involving Deel. Rippling's complaint further references a startup accelerator and other major competitors of Deel as additional victims, suggesting more witnesses may come forward.
Deel CEO Named as Mastermind
Rippling's lawsuit names Deel CEO Alex Bouaziz, his father Philippe Bouaziz (Deel's Chairman and CFO), and COO Daniel Westgarth as defendants. The complaint alleges Alex Bouaziz directly orchestrated the espionage, citing screenshots of messages as evidence. Rippling's legal team, led by former prosecutor Alex Spiro, is now pursuing RICO (racketeering) charges, in addition to claims under the Defend Trade Secrets Act and California state law.
This case is about a criminal syndicate that operated from the shadows of a multibillion-dollar technology company – Deel.
Federal prosecutors are reportedly investigating the allegations against Deel, though no charges have been filed.
Previous Allegations and Countersuit
The amended complaint reiterates Rippling's initial allegations, stemming from a Rippling employee's confession of spying for Deel. The employee admitted to stealing sales leads, product roadmaps, and other confidential information. Rippling claims the employee was caught in a honeypot operation. Deel has countersued, denying Rippling's accusations and making its own claims of espionage against Rippling, including allegations of impersonating a customer to gain access to non-public product information.
The legal battle between these HR tech rivals continues to escalate, with no end in sight.
