Deel Wins Key Legal Battle, But Rippling Wasn’t the Target
▼ Summary
– A Florida judge dismissed a lawsuit against Deel filed by Melanie Damian, who accused the company of helping Russian entities evade U.S. sanctions by processing payments for Surge Capital Ventures.
– Deel attempted to link this dismissed case to a separate lawsuit filed by rival Rippling, though Rippling’s CEO stated they were not involved in or funding the Florida case.
– Rippling’s ongoing lawsuit in California alleges Deel violated RICO and trade secret laws, centering on a former Rippling employee who testified he acted as a paid corporate spy for Deel.
– Deel is also suing Rippling, claiming one of Rippling’s employees impersonated a customer, while the alleged spy, Keith O’Brien, obtained a restraining order against individuals he said were surveilling him.
– Deel admitted to hiring surveillance on O’Brien after initially denying involvement, and both companies are vigorously defending themselves in the ongoing legal disputes.
A Florida court has dismissed a lawsuit against global HR and payroll provider Deel, though the company’s attempt to link the case to its ongoing legal battle with rival Rippling appears misplaced. The dismissed suit was brought by a court-appointed receiver, not Rippling, and centered on allegations that Deel helped Russian entities evade U.S. sanctions.
Melanie Damian, acting as receiver for Surge Capital Ventures, had accused Deel of processing payments for the firm, which was itself embroiled in a separate SEC case involving a $35 million Ponzi scheme targeting church members. That Florida case has now been thrown out.
Deel sought to connect this outcome to its heated dispute with Rippling, pointing out that both suits reference the Racketeer Influenced and Corrupt Organizations Act (RICO). Rippling’s CEO, Parker Conrad, was quick to clarify on social media that his company was not involved in the Florida action, stating, “This litigation has nothing to do with Rippling.”
The California lawsuit filed by Rippling makes very different claims. It alleges that a former Rippling employee admitted in an Irish court to acting as a paid corporate spy for Deel, leading to accusations under RICO, the Defend Trade Secrets Act, and California state law.
Deel appears to be banking on the Florida dismissal influencing the California proceedings. A company spokesperson suggested the ruling casts doubt on what they call “baseless” RICO claims by Rippling. However, legal experts note that the cases involve distinct facts and legal contexts, making direct comparisons tenuous.
In a further twist, Deel has countersued Rippling, accusing one of its employees of impersonating a customer. Meanwhile, Keith O’Brien, the individual who confessed to spying for Deel, recently secured a restraining order against individuals he claims were surveilling and intimidating his family. Court documents reveal that Deel eventually admitted to hiring “discreet surveillance” to monitor O’Brien, who is now a key witness for Rippling.
Parker Conrad has been publicly vocal, tweeting that Deel’s leadership will “face the music” when the case goes to trial. Deel, for its part, maintains it will “defend itself vigorously” in all pending matters.
As both legal and rhetorical battles intensify, the outcomes remain uncertain, with significant implications for both companies’ reputations and operational futures.
(Source: TechCrunch)
