Morning Brew ☕️

1/ Rippling, an HR software company, is suing Deel on the basis of corporate espionage.

They claim Deel had a mole inside Rippling digging for trade secrets.

So, what did they do? They set up a honeypot to catch the alleged spy in action.

Let's get into it. 

2/ Rippling created a fake Slack channel, pretending it was a space where employees trash-talked Deel.

They then baited the mole with an email about the channel.

Just hours later, their suspected mole went digging, proving (at least to Rippling) that Deel was up to something. 

3/ The so-called spy, an Ireland-based employee, had been snooping through Slack channels way outside his job description.

He was checking up on competitors (especially Deel) hundreds of times a month, downloading strategy decks, and allegedly passing the info back to Deel.

4/ When Rippling got a court order to seize his phone, he ran to the bathroom, locked the door, and (allegedly) tried to flush his phone.

When told that would violate the court order, he supposedly said "I'm willing to take that risk."

Investigators never found the phone. 

5/ Most of Rippling's case is built on Slack activity logs.

Every time someone searches for something, previews a channel, or downloads a file, Slack keeps receipts.

Rippling used those logs to show how often the spy was snooping where he wasn’t supposed to.

6/ Rippling and Deel have been at each other's throats for a while.

Rippling even made a petty little "Snake Game" that portrayed Deel as a greedy snake charging customers higher fees.

Deel wasn't thrilled.

This lawsuit is basically the next episode in their drama series.

7/ Deel isn't taking this quietly.

They denied all wrongdoing, saying Rippling was just trying to distract from its own issues—like a separate controversy about possibly violating Russian sanctions.

Basically, Deel's defense is: "Don't look at us, you're the real problem." 

8/ And this isn't some small-time rivalry.

Rippling is valued at over $13B, while Deel sits at a cool $12B.

Both are fighting for dominance in the HR software space, and this lawsuit might decide who gets the upper hand—or at least who looks worse in the public eye.

9/ Rippling hasn't said if they're also suing the alleged spy himself, but they've made it easy for the internet sleuths to find him.

The guy deleted his LinkedIn right after the lawsuit dropped, which only made people more suspicious.

10/ Whether Rippling wins or not, this whole scandal is a masterclass in corporate messiness.

If nothing else, it's a warning to anyone thinking about pulling some shady business moves.

And with news like this, who needs reality TV? 

11/ If you enjoyed this thread, follow us @MorningBrew 

We post business breakdowns like this 3x a week.

Source: https://www.businessinsider.com/rippling-sues-deel-alleged-corporate-espionage-2025-3