Rippling Accuses Deel of Espionage in $12B HR Tech Rivalry
Rippling's lawsuit alleges Deel planted a spy to steal trade secrets, escalating their fierce competition in the workforce management software market.
- Rippling claims Deel recruited an employee, referred to as 'D.S.', who accessed confidential data over 6,000 times, including sales pipelines and customer details.
- A honeypot operation set up by Rippling allegedly confirmed Deel's involvement, with the spy searching for a fake Slack channel hours after Deel executives were informed of it.
- Rippling alleges D.S. provided stolen information to Deel's leadership, including CEO Alex Bouaziz, and used it to counter sales efforts and poach employees.
- When confronted with a court order to preserve his phone, D.S. reportedly locked himself in a bathroom, possibly attempting to destroy evidence, before fleeing the premises.
- Deel denies the allegations, framing the lawsuit as a distraction from Rippling's own legal challenges, while Rippling seeks damages and a jury trial in federal court.