Rippling, a leading HR software startup valued at $13.5 billion, filed a lawsuit against its competitor Deel on Monday, accusing the company of orchestrating trade-secret theft.
In its legal complaint, Rippling claims that Deel cultivated an employee—referred to as a "spy"—who accessed sensitive internal documents from Rippling and leaked them to a reporter.
The lawsuit, filed in the U.S. District Court for California’s Northern District, further accuses Deel of violating the Racketeer Influenced and Corrupt Organizations Act (RICO) and misappropriating trade secrets.
This case adds another layer to the growing tension between the two startups, both valued at over $10 billion, making it one of the most high-profile legal disputes in the tech industry.
According to Rippling, the alleged spy was hired by the company in 2023, shortly before the two competitors intensified their rivalry. The employee is accused of accessing critical information about Rippling’s customers, sales calls, demos, and internal strategies.
Rippling sued @Deel today. Our lawsuit alleges Deel cultivated a spy at Rippling & orchestrated a long-running trade-secret theft. The spy searched “deel” in our systems 23 times per day on avg, letting him spy on Deel’s own customers who were considering a switch to Rippling. pic.twitter.com/94Lga5vXc1
— Parker Conrad (@parkerconrad) March 17, 2025
The complaint also states that this individual downloaded sensitive documents on how Rippling planned to compete with Deel.
Rippling claims that the employee then met with Deel executives and provided them with internal Slack messages, which were later sent to a reporter at The Information.
This act of corporate espionage, if proven, could have serious repercussions for Deel, as trade secrets are critical in the highly competitive HR software market.
Rippling’s legal filing provides additional details about the actions of the accused "spy." According to the complaint, when Rippling discovered the alleged theft, the company took immediate action, serving a court order on the employee to preserve data on his mobile phone.
Rippling claims the spy tried to hide evidence by locking himself in a bathroom to delete files, despite warnings from an independent solicitor to preserve the data. The individual allegedly fled the scene, further raising the stakes in the case.
Rippling’s account suggests a deliberate attempt to destroy evidence, which could lead to further legal consequences for the accused employee and Deel if the allegations are proven true.
Deel has denied the allegations and responded to the lawsuit by claiming that Rippling is using the trade-secret theft accusations to deflect attention from its own legal troubles.
Deel spokespersons argue that Rippling is attempting to shift the narrative after facing accusations related to violations of sanctions law in Russia. Deel has also promised to file counterclaims, denying any legal wrongdoing and asserting that Rippling's claims are sensationalized.
The back-and-forth between the two companies highlights the tense competitive dynamics within the HR software industry, where both companies have emerged as major players.
Rippling's decision to pursue this lawsuit emphasizes the high stakes of corporate espionage and the protection of trade secrets in the tech industry. Both companies are valued at over $10 billion, with Rippling recently valued at $13.5 billion and Deel at $12 billion.
The legal battle will likely set a precedent for how trade secrets are handled and litigated in the tech sector.
Parker Conrad, Rippling’s co-founder and CEO, expressed his commitment to fighting these allegations in order to send a message that such misconduct will not be tolerated in the industry.
This lawsuit also draws attention to the increasing role of corporate espionage in the tech world, especially as companies become more competitive.
Parker Conrad is the co-founder and CEO of Rippling, a leading human resources (HR) software company. Rippling, founded in 2016, offers a platform that integrates HR, IT, and other business operations into a single system, allowing companies to manage payroll, benefits, employee onboarding, and device management more efficiently.
Before Rippling, Conrad was the co-founder and CEO of Zenefits, a cloud-based HR platform that gained significant attention for its rapid growth and disruptive approach to HR technology.
Zenefits faced significant regulatory challenges, including issues related to licensing and compliance, which led to Conrad stepping down as CEO in 2016. Despite these challenges, Conrad's entrepreneurial journey continued with the creation of Rippling, which has since gained recognition and a strong market presence.
Conrad is known for his innovative mindset and focus on improving enterprise-level operations through technology. Under his leadership, Rippling has raised substantial funding and is valued at billions of dollars, positioning the company as one of the prominent players in the HR tech industry.
In addition to his business ventures, Parker Conrad is also noted for his experience navigating the ups and downs of startup life, including legal and regulatory hurdles, which have shaped his approach to leadership and innovation in the tech world.
