Rippling Takes Legal Action Against Deel for Alleged Corporate Spying Scandal

"Rippling Sues Deel Over Alleged Corporate Espionage"

Rippling has sued Deel, alleging it hired a mole to steal trade secrets, escalating their intense rivalry in the H.R. industry.

Rachel Patel4 hours agoLast Update : 4 hours ago

Rippling Sues Deel, a Software Rival, Over Corporate Spying

www.nytimes.com

On March 17, 2025, Rippling, a human resources service provider, filed a lawsuit against its competitor Deel, alleging corporate espionage. The lawsuit claims that Deel hired an employee to infiltrate Rippling’s Dublin office and access confidential trade secrets, a tactic described as a “brazen act of corporate theft.”

6 Key Takeaways

Rippling sues Deel for corporate espionage.
Accusations involve a mole in Dublin office.
Rippling used a "honeypot" trap method.
Both companies valued over $12 billion.
Rivalry includes past legal conflicts.
Deel declined to comment on allegations.

Rippling asserts that it discovered the alleged mole through a “honeypot” trap involving a Slack channel, which was referenced in communications to Deel’s executives. Vanessa Wu, Rippling’s general counsel, emphasized the importance of legal competition in her statement.

Fast Answer: Rippling has sued Deel for allegedly hiring a mole to steal trade secrets from its Dublin office. The lawsuit claims that the employee was identified through a “honeypot” trap involving a Slack channel. Rippling’s valuation is $13.5 billion, while Deel’s is over $12 billion.

The rivalry between Rippling and Deel has intensified as both companies have transformed the human resources sector into lucrative enterprises. Rippling is valued at approximately $13.5 billion, while Deel holds a valuation exceeding $12 billion. The competitive nature of these firms is evident, particularly at Rippling, where CEO Parker Conrad is recognized for his aggressive management style.

In recent years, the two companies have faced off in various disputes, including allegations of unfair practices. Notably, Conrad has restricted former employees who moved to Deel from participating in secondary stock sales. Additionally, a Rippling investor is involved in a lawsuit against Deel concerning violations related to Russia sanctions.

Rippling’s lawsuit details that the employee, identified as D.S., began searching for references to Deel within Rippling’s Slack messages at an increased frequency starting in November. This activity allegedly aimed to uncover sensitive information, such as sales leads and pitch decks related to Deel’s customers.

As the legal battle unfolds, it highlights the lengths to which companies may go to protect their intellectual property and competitive edge in the rapidly evolving HR technology landscape.

Notice: Canadian readers should be aware of the implications of corporate espionage laws in Canada, which can differ significantly from those in the united states. Understanding local regulations is crucial for businesses operating in the HR sector.

The ongoing dispute between Rippling and Deel underscores the fierce competition in the HR service provider market, with both companies striving to maintain their competitive advantages amid serious allegations of misconduct.