Deel has secured a legal victory after a Florida judge dismissed a lawsuit accusing the HR and payroll provider of processing payments that allegedly helped Russian entities bypass U.S. sanctions. The case, filed by court-appointed receiver Melanie Damian on behalf of investors tied to Surge Capital Ventures, claimed Deel was responsible for transactions connected to a Ponzi scheme that defrauded church members of $35 million.
While this dismissal is a win for Deel, it is important to note that this lawsuit was not the high-profile case involving its rival, Rippling. Earlier this year, Rippling sued Deel in California, alleging violations under the Racketeer Influenced and Corrupt Organizations Act (RICO), the Defend Trade Secrets Act, and California state law. That case revolves around claims of corporate espionage, including testimony from Keith O’Brien, a former Rippling employee who admitted to acting as a paid spy for Deel.
Deel, however, is framing the Florida dismissal as a signal that similar RICO allegations brought by Rippling may lack merit. A company spokesperson emphasized that the ruling “invites further questions about the credibility of another baseless set of RICO accusations by Rippling in California.”
Still, the cases are separate and involve very different circumstances. Rippling’s CEO Parker Conrad has been vocal, stating publicly that the Florida case “has nothing to do with Rippling.” Meanwhile, tensions between the two companies continue to escalate, with Deel filing its own countersuit against Rippling over allegations of unlawful impersonation of customers.
As both sides prepare for the California trial, the rivalry between Deel and Rippling highlights the increasingly competitive — and contentious — landscape of HR and payroll technology.
