The fight between HR tech startups has exacerbated another notch this week as an 84-page complaint filed Thursday in a lawsuit against Deel.
The complaint alleges that DEEL is involved in targeting, penetrating and damaging four other competitors in addition to ripple.
The revised complaint does not list four victims except Toku, a crypto-based tax and payroll compliance company. Toku is suing its rival Liquifi, who also accused the company of espionage, and Deel is involved.
Rippling's revised complaint states: "Victim 3 is a startup accelerator that previously worked with Deel." The complaint is not named, even suggesting who it is. (Y Combinator supports Ripple and Deel, but there is no indication that this is referring to venture capital firms. YC has not responded to our request for comment.)
The complaint also says that among the employers in the record market, one or more other victims are “the main competitors of Deel.” Sources familiar with the investigation believe more witnesses will soon provide details at other companies.
A Deel spokesman called the claims "very far away" in Rippling's original lawsuit, adding: "Its amendment failed to correct any myriad fatal flaws in its original complaint."
Rippling's amendment lawsuit also claims that Deel's CEO Alex Bouaziz is the direct planner of all this, sharing screenshots of the message as evidence. And, while this is a civil lawsuit, the ripple now means that it can be a criminal matter.
"This situation is about a criminal group that runs from the shadow of a multi-billion-dollar technology company, Deel," the complaint reads.
Rippling's amended lawsuit is now being filed under the Federal Racket (RICO) Regulations as well as the Trade Secrets Act and California law. The lawsuit is named directly Alex Bouaziz; his father Philippe Bouaziz is chairman and chief financial officer; Deel's chief operating officer Daniel Westgarth.
It is important to note that the lead lawyer at Ripple is Alex Spiro of Quinn Emanuel, a white shoe firm. Spiro is a former prosecutor in the Manhattan District Attorney’s Office. (He is well known in the legal world that he has his own Wikipedia page.) Using words like “criminal groups” in civil cases is a deliberate choice.
Federal prosecutors are now actively investigating the allegations against Deel, according to sources familiar with the case. A Deel spokesman denied this: "We are not aware of any active investigation into our business. As detailed in our lawsuit, Rippling has a long history of filing false or sensational allegations to government authorities that prompted the government to raise “inquiries” from the government and then leaking to the media and then leaking to the media."
However, investigations in any form are not beliefs. However, if the charge is filed, Rippling is doing his best to establish Bouaziz himself as one of the persons in charge. Complaints even repeatedly use brightly colored language "Bouaziz blackmail business".
In addition, many of the revised complaints reiterate that the corrugated has been alleged. To review: A pending employee supplies Dell’s paid spy in an affidavit, just like a Hollywood movie. The employee takes sales leads, product roadmaps, customer accounts, names of superstar employees, and any other information in court.
He and the corrugated statement were caught in a corrugated honeypot. Rippling is suing Deel, accusing trade secrets of misappropriation, infringement of intervention, unfair competition, etc., mainly based on espionage charges.
Deel objected otherwise in the case, which was related to the denial of the allegations of Ripple, but more about making several of his own claims about Ripple. For example, earlier this week, Deel filed a revised lawsuit claiming that the Ripple monitored Deel by giving employees "fake" their customers access to non-public product information.
A Deel spokesman said Rippling's revision, filed "Rehash" and insisted on the advantages of its own allegations. “We win in the market, we stick to our own lawsuits, and we will defend in court.”
Grab some fresh popcorn. There is no sign of slowing down this battle between the masters.