Inside the Intrigue: Rippling Employee's Spying Affidavit on Deel Unfolds Like a Thriller

Inside the Intrigue: Rippling Employee’s Spying Affidavit on Deel Unfolds Like a Thriller

In a dramatic turn of events, Rippling has publicly disclosed a shocking affidavit revealing that one of its employees, Keith O’Brien, acted as a corporate spy for its competitor, Deel. This revelation, combined with Rippling’s recent lawsuit against Deel, has sparked significant interest in corporate espionage within the HR tech industry.

Rippling’s Lawsuit Against Deel

Last week, Rippling, a leading workforce management platform, filed a lawsuit against Deel, accusing the company of corporate espionage. The allegations include serious charges such as:

  • Violations of the RICO racketeering act
  • Misappropriation of trade secrets
  • Unfair competition

Despite the gravity of these allegations, details about the employee’s identity were kept under wraps until recently, when Rippling released the affidavit signed on April 1, 2023.

Becoming a Corporate Spy: The Testimony of Keith O’Brien

Keith O’Brien, who joined Rippling in July 2023, initially sought employment at Deel in early 2024 but was unsuccessful. However, he managed to establish a connection with Deel’s founder via LinkedIn. Subsequently, he proposed a payroll consulting business to Deel and discussed leaving Rippling to pursue it full-time.

During his testimony, O’Brien revealed that Deel’s CEO, Alex Bouaziz, and CFO, Philippe Bouaziz, suggested he spy on Rippling instead of quitting. They allegedly offered him €5,000 per month, with initial payments made in cryptocurrency.

Information Shared with Deel

O’Brien admitted to accessing various Rippling resources, including:

  • Slack communications
  • Google Drive documents
  • Sales leads and product roadmaps
  • Customer accounts and employee identities

Over a span of four months, O’Brien reportedly shared sensitive information about numerous companies interested in Rippling demos and critical insights into Deel’s prospective clients.

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The Unraveling of the Espionage Scheme

O’Brien believed he was erasing any evidence of his actions. However, he later discovered that screen recordings he had made were unintentionally backed up to his iCloud account. In a strategic move, Rippling sent a legal letter to Deel’s leadership, hinting at a potential leak of damaging information from a fictitious Slack channel named “d-defectors.” This was part of a trap to uncover the spy.

After searching the “d-defectors” channel, O’Brien was confronted at work by legal representatives who demanded access to his devices. He attempted to destroy evidence by:

  1. Hiding his phone and wiping it clean
  2. Smashed the device with an axe
  3. Discarding it down the drain at his mother-in-law’s house

The Fallout and Legal Ramifications

Despite attempts to evade capture, O’Brien’s actions led to a series of frantic communications with Deel’s CEO and others, where they suggested he make false statements to authorities regarding Rippling’s alleged involvement in facilitating Russian payments. Eventually, O’Brien chose to cooperate with authorities and disclose the truth.

Deel has not publicly commented on the allegations since the lawsuit was filed. A spokesperson indicated that Rippling was attempting to divert attention from its own legal troubles.

Reactions and Industry Implications

Rippling’s attorney, Alex Spiro, expressed confidence in their case, stating, “The evidence in this case is undeniable. The highest levels of Deel’s leadership are implicated in a brazen corporate espionage scheme.” This assertion has garnered support from other industry leaders, including Eynat Guez, CEO of Papaya Global, who praised Rippling’s initiative against such practices.

For more detailed insights into the affidavit and the ongoing legal battle, you can read the full document here.

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Conclusion

This unfolding saga between Rippling and Deel highlights the intense competition in the HR tech space and raises critical questions about ethics and integrity in business practices. Stay tuned as this story develops, and for more information on corporate espionage, visit TechCrunch.

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