Rippling Accuses Deel of Spying and Calls It a ‘Criminal Syndicate’
▼ Summary
– Rippling filed an amended lawsuit accusing Deel of corporate espionage against four competitors, including Toku, and alleges Deel’s CEO orchestrated the scheme.
– The complaint names Deel’s CEO, his father, and COO, suing under RICO, trade secrets laws, and California state law, framing it as a criminal matter.
– Rippling’s lead attorney, Alex Spiro, is a high-profile lawyer, and the lawsuit uses strong language like “criminal syndicate,” suggesting deliberate legal strategy.
– Deel denies the allegations, calling them sensationalized, and has countersued Rippling for similar espionage claims, asserting confidence in winning the case.
– Federal prosecutors may be investigating Deel, though no charges have been filed, and the legal battle between the rivals continues to escalate.
The legal battle between HR tech giants Rippling and Deel has escalated dramatically, with new explosive allegations surfacing in court documents. Rippling recently filed an 84-page amended complaint accusing Deel of orchestrating a corporate espionage campaign targeting multiple competitors, including cryptocurrency payroll firm Toku.
The updated lawsuit paints Deel as a “criminal syndicate” operating under the leadership of CEO Alex Bouaziz, whom Rippling claims masterminded the scheme. Screenshots of internal messages allegedly tie Bouaziz, his father Philippe (Deel’s CFO), and COO Daniel Westgarth to the operation. Rippling is now pursuing the case under federal racketeering (RICO) laws, alongside trade secret theft and unfair competition claims.
One of the most striking accusations involves a Rippling employee who admitted to spying for Deel, stealing sales leads, product roadmaps, and confidential customer data. The employee was reportedly caught in a honeypot sting set up by Rippling. While Deel dismisses the claims as “far-fetched”, sources suggest federal prosecutors may be investigating the allegations—though Deel denies any active probes.
Meanwhile, Deel has fired back with its own lawsuit, accusing Rippling of corporate espionage tactics, including impersonating customers to gather proprietary information. A Deel spokesperson dismissed Rippling’s amended filing as a “rehash” and expressed confidence in their legal position.
With both companies trading serious accusations and high-profile legal teams involved—including Rippling’s lead attorney, former Manhattan prosecutor Alex Spiro—this feud shows no signs of cooling off. The outcome could reshape the competitive landscape of the HR tech industry, making this one of the most closely watched corporate disputes in recent memory.
(Source: TechCrunch)
