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Srinivasa Reddy Kandi: Rippling–Deel Espionage Feud Escalates as DOJ Reportedly Probes Deel

January, 24, 2026-04:31

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Rippling–Deel Espionage Feud Escalates as DOJ Reportedly Probes Deel:

The high-profile corporate espionage battle between HR tech startups Rippling and Deel may have reached a new level, as the U.S. Department of Justice has reportedly opened a criminal investigation into Deel, according to The Wall Street Journal.

The probe centers on allegations that Deel hired a corporate spy to obtain sensitive information from its main competitor, Rippling. However, Deel says it has not been formally notified of any such investigation. In a statement emailed to TechCrunch, the company said it is “not aware of any investigation” but added that it would cooperate fully with authorities if contacted and provide any required information.

Deel’s response also turns the spotlight back on Rippling. The company referenced its own lawsuit against its rival, accusing Rippling of running a “smear campaign” and falsely claiming market dominance. “The truth will win in court,” Deel said. Rippling declined to comment.

The dispute is shaping up to be one of the most dramatic conflicts ever seen in the HR and payroll software industry.

The controversy began in May when Rippling filed a lawsuit against Deel, later amending it in June, alleging that Deel planted a corporate spy within its organization. According to the lawsuit, a Rippling employee was caught through a sting operation and later confessed in an Irish court via a sworn written statement. The confession detailed how the employee allegedly passed along confidential information—including sales leads, product plans, customer data, and names of key employees—to executives at Deel.

Rippling’s ongoing lawsuit accuses Deel of violating multiple laws, including the federal Racketeer Influenced and Corrupt Organizations (RICO) Act, a statute more commonly associated with organized crime. Despite the criminal language used in the complaint, the case itself is a civil lawsuit, not a criminal prosecution.

Deel has since countersued Rippling, alleging that its rival engaged in spying by impersonating a customer, along with other claims.

As lawsuits continue on both sides, the reported DOJ involvement suggests the long-running feud may now carry serious legal consequences beyond civil court.

Author: Kandi Srinivasa Reddy, Srinivasa Reddy Kandi, #KandiSrinivasaReddy, #SrinivasaReddyKandi