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Rippling sues Deel over alleged trade-secret theft

Tuesday 18 March 2025 10:57 CET | News

Rippling, a human resources software company, has taken legal action against Deel in federal district court, alleging that the latter infiltrated a spy to organise a trade-secret theft. 

According to Rippling’s complaint in the US District Court for California’s Northern District, the employee met with Deel executives and provided internal records to a reporter. Additionally, as part of the filing, the company alleged that Deel violated the 1970 Racketeer Influenced and Corrupt Organisations Act and misappropriated trade secrets. However, in an email sent to CNBC, Deel representatives denied all legal wrongdoing, underlining their plans to assert their company’s counterclaims.

Rippling sues Deel over alleged trade-secret theft

Almost two months ago, more specifically in January 2025, Deel filed against allegations that its platform supported money laundering and sanctions evasion. At that time, the company filed a motion to dismiss the Racketeer Influenced and Corrupt Organisations Act complaint brought against it by a trustee for fraud victims.

Rippling vs Deel

Rippling confirmed its findings earlier in March 2025, with its general counsel sending a letter to three Deel executives that referenced a new Slack channel and the reported Deel spy looking for it. Afterwards, Rippling served a court order to the spy at its office in Ireland requiring them to preserve information on their mobile phone. However, it is mentioned that the individual proceeded to not do that, intending to delete any evidence from their device despite breaching a court order with penal endorsement. The individual was hired at Rippling for a management role in 2023.

Furthermore, as reported by Rippling, the spy accessed details about its customers, quotes, sales calls, demos, and support requests in internal Slack repositories. Also, the person found and downloaded Rippling’s guidance on how to compete with Deel for prospective business, as per the filing. The complaint also included information regarding a reporter from The Information sending an inquiry to Rippling that included Slack messages from inside the company, confirming that the data was collected by the spy.


Source: Link


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Keywords: fraud management, online security, online fraud, fraud prevention, compliance
Categories: Fraud & Financial Crime
Companies: Deel, Rippling
Countries: United States
This article is part of category

Fraud & Financial Crime

Deel

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Rippling

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