Deel fires back with lawsuit as Rippling espionage case heats up

The escalating legal war between payroll giants Deel and Rippling took another sharp turn on Friday, with Deel filing a lawsuit of its own and publicly accusing Rippling of a “pattern of behavior” that it claims undermines integrity in the HR industry.

In a newly released statement, Deel said it filed a civil suit against Rippling in the Superior Court of Delaware, outlining what it describes as a "longstanding pattern of behavior" by Rippling involving "attacking competitors and former employees — including Deel — through legal action, frivolous regulatory complaints, and misleading marketing tactics."

Alex Bouaziz.

The move comes amid growing scrutiny over allegations leveled by Rippling that Deel CEO Alex Bouaziz personally recruited a former Rippling employee to act as a mole and steal trade secrets — an accusation that Deel, notably, did not directly dispute in its response. In a post on X (formerly Twitter), Rippling CEO Parker Conrad highlighted this omission, writing: "Nowhere does Deel dispute our central allegation – that @Bouazizalex personally recruited a spy to steal Rippling’s trade secrets, and personally directed the theft."

In the lawsuit, Deel claims that former Rippling employee Keith O’Brien, who has admitted to spying for Deel, only did so because he was "traumatized" by Rippling to lie. Deel also claims that Rippling placed its own spy within Deel.

Earlier this month, it was reported that Bouaziz is currently in Dubai, raising questions about attempts by Rippling to serve him with legal papers in Ireland’s High Court, where the espionage case is unfolding. A Deel spokesperson told TechCrunch on Friday that "Alex lives in Israel. He was in Dubai for a few days for Passover with his family, something he's done for the past several years."

Bouaziz’s absence has complicated Rippling's efforts to formally serve Deel executives with legal documents. French bailiffs have so far been unable to locate Bouaziz. Deel’s CFO, Philippe Bouaziz — Alex’s father — also lists his location as the UAE on his social media profiles, and Deel’s fintech attorney, Asif Malik, was reported to be in the Emirates as well. The concentration of Deel’s leadership in the UAE, or Israel in the case of Alex Bouaziz, has fueled speculation about whether the company’s top brass are evading European and American legal proceedings.

In its lawsuit filed this week, Deel also sought to move Rippling’s lawsuit from California to Ireland — invoking a forum non conveniens motion, given that Rippling had previously initiated related litigation there. Deel further filed a motion to dismiss Rippling’s complaint for failing to state a viable claim and an Anti-SLAPP motion, accusing Rippling of using litigation to infringe on Deel’s protected conduct.

“We have taken the high road in the past but enough is enough,” Deel wrote in its public statement, adding that it would no longer tolerate Rippling’s alleged tactics. The company, which boasts 35,000 customers and a $12 billion-plus valuation, emphasized that it remains “laser focused” on building its payroll and HR platform despite what it called “unnecessary noise generated by a lagging competitor.”

Meanwhile, the espionage accusations at the center of the dispute remain serious. In previous court filings, Rippling alleged that former employee Keith O’Brien — now a whistleblower — was paid $6,000 a month by Deel to secretly pass confidential documents. O’Brien admitted under oath to his role, although he claimed he acted under instruction from senior Deel officials.

Justice Mark Sanfey, presiding over the case, noted the seriousness of the situation, even as he opted not to penalize O’Brien for destroying evidence — namely, smashing his phone with an axe and throwing it into a drain — citing the threats O’Brien had received.

With parallel lawsuits now underway in two countries, and Deel’s top executives dispersed across international borders, the legal standoff between the two tech unicorns shows no signs of cooling off.