Rippling, a human resources software startup, has filed a lawsuit against competitor Deel, claiming that a spy carried out corporate espionage. The two companies, valued at billions of dollars, have been increasing competition in the market.
According to Rippling’s complaint, an employee was hired by the company without their knowledge and gathered data on how to counter Deel’s strategies. The employee also accessed information on sales calls, demos, and support requests, as well as guidance on how to compete with Deel for business.
Rippling claims that Deel cultivated a spy to steal trade secrets and violate anti-trust laws. The company says it has evidence of the spy’s activities, including emails and Slack messages, which show the employee met with Deel executives and passed internal records to a reporter.
Deel denies all allegations and claims that Rippling is trying to shift the narrative after being accused of violating sanctions law in Russia. A spokesperson for Deel stated, “We deny all legal wrongdoing and look forward to asserting our counterclaims.”
The incident highlights the growing concern about corporate espionage in the tech industry. As companies become more competitive, they are increasingly looking to gather intelligence on their rivals. However, this can also lead to a culture of mistrust and vigilance.
Rippling’s CEO, Parker Conrad, said that his company is taking this step to send a clear message that such misconduct has no place in the industry. The incident serves as a reminder for companies to prioritize data security and protect their trade secrets.
Source: https://www.cnbc.com/2025/03/17/startup-rippling-sues-competitor-deel-claiming-a-spy-stole-sales-data.html