It’s gloves off in one of the more tense rivalries in the world of Startups. HR company Rippling Monday morning announced a lawsuit against Deel, another big player in the same space.
The dramatic 50-page complaint alleges racketeering, misappropriation of trade secrets, tortious interference, unfair competition, and adding and abetting a breach of fiduciary duty. The lawsuit is largely centered on an employee whom Rippling claims was working as a spy for Deel. TechCrunch reported.
Deel has denied the allegations in a statement to TechCrunch in an equally florid way, setting the stage for the airing of yet more dirty laundry.
“Weeks after Rippling is accused of violating sanctions law in Russia and seeding falsehoods about Deel, Rippling is trying to shift the narrative with these sensationalized claims,” a spokesperson said in a statement provided to TechCrunch. “We deny all legal wrongdoing and look forward to asserting our counterclaims.
The HR technology space is highly competitive, featuring not only major incumbents —SAP, ADP, Workday among them — but also numerous startups targeting the many different aspects of HR, such as payroll, recruitment, training, compensation benefits management and onboarding. Companies like Deel and Rippling aim to prove an all-in-one platform for these services.
Boing Boing reported: HR firm Rippling has filed a lawsuit against rival Deel, alleging they planted a spy in their Dublin office.
This filing is packed with action and excitement, Jason Weisberger at Boing Boing reported. Rippling alleges Deel planted a spy in their office. They employed a honey pot trap to catch the spy and then tracked the employee’s activities. Things got extra silly when Rippling attempted to nab the guy.
“The bag only contained a notebook. It held no mobile device,” the lawsuit says.
The spy then went into the bathroom and locked the door, “despite the independence solicitor’s repeated warnings that these actions were in violation of the court order,” the lawsuit says.
The employee “then stormed out of the office and fled the scene,” the lawsuit says.
The San Francisco Standard reported: HR platforms Rippling and Deel are known for automating the mind-numbing work of payroll and compliance. Now, one San Francisco company is suing the other for alleged corporate espionage— and the details read like a spy thriller.
In a lawsuit filed Monday, in federal court in San Francisco, Rippling accused its top competitor of “a brazen act of corporate theft.” Rippling claims that Deel placed within its ranks a spy, identified in the complaint as D.S., who orchestrated a long-running theft of company secrets. Rippling said it uncovered the operation by placing a “honeypot” trap to lure D.S. into revealing himself on Slack.
A representative of Deal did not immediately respond to a request for comment. In a statement, a Deel spokesperson denied the claims and accused Rippling of trying to “shift the narrative” after it was accused of violation sanctions law in Russia.