In a recent escalation of the ongoing public dispute between HR and payroll service competitors, Deel has filed a countersuit against Rippling.
Previously, Rippling announced on March 17 that it was initiating legal action against Deel, alleging corporate espionage. The accusations included violations of the RICO Act, misappropriation of trade secrets, and unfair competition. Deel has criticized this lawsuit, claiming it is an attempt to damage Deel’s reputation.
The original lawsuit included an affidavit from the alleged spy, which has been described as dramatic. Deel had denied any wrongdoing.
Deel has now proceeded to file a civil suit against Rippling in the Superior Court of Delaware, as announced in a blog post on Friday. Deel’s complaint, dated April 24, characterizes Rippling’s CEO, Parker Conrad, as being driven by jealousy and unable to compete fairly with Deel.
Additionally, Deel accused Rippling of not properly handling customers’ payroll taxes and social benefits, alleging that these funds were misreported as the company’s earnings. They claimed that similar practices were used against Rippling’s employees.
In response, Conrad posted on X, asserting that Deel did not dispute the key allegation that an individual recruited a spy to steal Rippling’s trade secrets.
Deel’s legal filing includes three motions in response to Rippling’s March lawsuit:
– A motion to dismiss in favor of Ireland, where prior litigation was initiated involving the alleged spy, Keith O’Brien.
– A motion to dismiss under Rule 12(b)(6) due to an alleged failure to state a viable claim.
– An anti-SLAPP motion to counter Rippling’s litigation efforts perceived to suppress Deel’s rights.
Deel further accuses Rippling of soliciting its employees for confidential information and placing an insider to monitor internal communications at Deel.
By April 14, Rippling attempted to serve legal papers to Alex Bouaziz, Deel’s CEO, but French bailiffs were unable to locate him. It was reported that Bouaziz was in Dubai for Passover, which complicated the serving process. Deel stated that Bouaziz resides in Israel and often spends Passover in Dubai with family.
