Hustler Words – A Florida judge dismissed a lawsuit against Deel, the embattled HR and payroll provider. While Deel framed this as a "Rippling-aligned" and "Rippling-supported" lawsuit, Rippling CEO Parker Conrad swiftly denied any involvement via Twitter. This dismissal, however, relates to a separate case alleging Deel’s facilitation of payments for Surge Capital Ventures, a company implicated in a Ponzi scheme. Melanie Damian, a court-appointed receiver for Surge, filed the suit on behalf of defrauded investors, accusing Deel of violating the Racketeer Influenced and Corrupt Organizations Act (RICO). The dismissal is a significant win for Deel, but the larger legal battle with Rippling continues.
This victory comes amidst a much larger, more complex legal conflict between Deel and its rival, Rippling. Rippling’s lawsuit in California alleges that Deel violated RICO, the Defend Trade Secrets Act, and California state law, stemming from allegations of corporate espionage involving a former Rippling employee, Keith O’Brien. O’Brien, now Rippling’s star witness, testified in an Irish court about his role as a paid corporate spy for Deel. Deel initially denied involvement but later admitted to "discreet surveillance" of O’Brien.
Adding another layer of complexity, Deel is also countersuing Rippling, claiming that a Rippling employee unlawfully impersonated a customer. O’Brien himself has obtained a restraining order against individuals he claims were harassing him and his family. The interwoven nature of these lawsuits, with accusations of RICO violations and corporate espionage, makes this a high-stakes battle for both companies.
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Deel is attempting to leverage the Florida dismissal to challenge the merit of Rippling’s RICO allegations in California. However, the distinct nature of the cases means the outcome in California remains uncertain. The legal saga continues, with Deel vowing a vigorous defense and Rippling’s CEO expressing confidence in their eventual victory. The future of this high-profile tech feud remains uncertain, with multiple lawsuits and counter-suits pending. The outcome will significantly impact the landscape of the HR and payroll industry.
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