A Florida judge dismissed a lawsuit against HR and payroll provider Deel on Tuesday. Deel referred to it as a “Rippling-aligned” lawsuit, although it’s not the notorious case by rival Rippling involving corporate espionage. Rippling CEO Parker Conrad stated that Rippling was not involved, did not fund it, and was not a party to it. The lawsuit in Florida was filed by Melanie Damian, accusing Deel of aiding Russian entities in bypassing U.S. sanctions through payments for Surge Capital Ventures, which had been implicated in a Ponzi scheme.
Deel attempted to connect this case to Rippling’s suit as both involved RICO allegations. Rippling’s separate lawsuit in California accuses Deel of violating RICO and trade secret laws, with claims involving a Rippling employee allegedly spying for Deel. Deel sees the dismissal as questioning the credibility of Rippling’s RICO accusations. However, the cases involve differing circumstances, so the outcome of the California case remains to be seen. Deel is counter-suing Rippling, alleging unlawful impersonation by an employee. Keith O’Brien, who admitted to spying for Deel, obtained a restraining order against alleged followers, becoming a key witness for Rippling.
Deel’s initial denial of involvement in O’Brien’s surveillance was later acknowledged as hired discreet surveillance. Rippling CEO Conrad challenged Deel’s founders Alex and Philippe Bouaziz regarding the court case. Deel remains committed to defending itself and focusing on market success.