Rippling’s recent release of an affidavit detailing the actions of an employee who allegedly spied for Deel reads more like a thriller than a corporate lawsuit. The affidavit, coupled with Rippling’s lawsuit filed last week, reveals a dramatic tale of corporate espionage that includes a sting operation, a smashed phone, and a trail of misdeeds.
The case marks a new chapter in the ongoing rivalry between Rippling and Deel. The account, as detailed in Rippling’s recent public disclosures, tells one side of the story — the version that Rippling is eager to present, amplified by its PR efforts and a tweet-storm by CEO Parker Conrad.
The Allegations
To recap, Rippling, a global workforce management platform, accused Deel of corporate espionage, including violations under the RICO racketeering act, misappropriation of trade secrets, and unfair competition. While the lawsuit had previously not named the employee involved, that changed this week with the release of the affidavit, signed on April 1.
From Employee to Spy
According to the affidavit, Keith O’Brien, a Rippling employee since July 2023, worked in the global payroll and compliance department at Rippling’s Dublin office. In early 2024, O’Brien applied for a job at Deel but was rejected. However, his relationship with Deel’s CEO, Alex Bouaziz, continued via LinkedIn. O’Brien later started a payroll consulting business, pitching Deel on working together, and eventually told Deel he was planning to leave Rippling to focus on his new venture.
Instead of leaving Rippling, O’Brien claims Deel’s leadership offered him a lucrative deal to spy on Rippling. The Bouaziz family — CEO Alex Bouaziz and his father Philippe, the CFO — allegedly offered O’Brien €5,000 per month, starting at US$6,000 and later paid in cryptocurrency. O’Brien testified that he was instructed to gather confidential information, including sales leads, product roadmaps, customer accounts, and more, from Rippling’s internal resources, such as Slack and Google Drive.
The Sting Operation and Uncovered Evidence
Rippling’s legal team reportedly set a trap to expose the spy. The lawsuit alleges that Rippling’s lawyer sent a threat to Deel, warning that the company was aware of a “d-defectors” Slack channel where sensitive information was being discussed — a channel that, it turned out, was a fabricated ruse.
O’Brien, instructed to search this nonexistent channel, was apparently lured into the trap. On March 14, a lawyer confronted O’Brien at the office, presenting a court order to search his devices. In a desperate attempt to cover his tracks, O’Brien hid his phone, fled to the office bathroom, wiped it clean, and pretended to flush it down the toilet.
In an act of panic, O’Brien later destroyed the phone with an axe and disposed of it at his mother-in-law’s house. Yet, unknown to him, screen recordings of his activities had already been backed up to his iCloud account.
The Aftermath and Deel’s Response
Following the confrontation, O’Brien fled the office and, in a state of panic, exchanged messages with Deel’s CEO and others whom he believed were Deel’s legal representatives. The communication included discussions of fleeing to Dubai, where extradition laws might protect him.
Despite initial attempts to cover up his actions, O’Brien eventually sought legal counsel and decided to cooperate with authorities, “telling the truth” about his espionage activities.
Deel has not responded to the allegations in detail. However, in an earlier statement, Deel denied any wrongdoing, asserting that Rippling’s claims were an attempt to shift the narrative. They further stated they would assert counterclaims in the ongoing legal battle.
Rippling’s Confidence
Rippling’s legal counsel, Alex Spiro, remains confident in their position. “The evidence is undeniable,” Spiro stated. “The highest levels of Deel’s leadership are implicated in this brazen corporate espionage scheme, and they will be held accountable.”
Meanwhile, competitors in the HR tech space, such as Papaya Global, have expressed support for Rippling’s stance, applauding the company for exposing what they claim is a systemic issue of corporate espionage. Despite past controversies, including Rippling’s marketing campaigns aimed at Deel, the company appears resolute in its position to confront what it calls unfair business practices.
