HR software company Rippling has filed a lawsuit against competitor Deel, alleging that Deel used spies to steal its trade secrets. The lawsuit claims a spy was caught within Deel’s ranks during a honeypot operation. It details how Deel’s recruiters contacted Rippling employees using personal phone numbers to gather confidential information and investigate alleged compliance violations. Rippling asserts that an Irish employee, unnamed in the suit, downloaded sensitive company information, including a strategic presentation.
Rippling claims to have discovered a “mole” through honeypot tactics, where they created a faux Slack channel, “#d-defectors,” to catch anyone sharing internal insights with Deel. They allege that this employee accessed confidential channels and attempted to destroy evidence during a legal inspection of their device. Deel has denied any wrongdoing, suggesting that Rippling is deflecting from its own legal challenges related to alleged sanctions violations.
The lawsuit highlights the intense rivalry between the two firms, both vying for dominance in workforce management software, each gaining traction through different business models and strategies. The competition has led to various public accusations and legal actions, further escalating tensions in the tech industry.
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