A Florida judge has dismissed a lawsuit against HR and payroll provider Deel, giving the embattled startup a partial win as it continues to face legal battles with rival Rippling.
The Florida case, filed in January by Melanie Damian, accused Deel of helping Russian entities evade U.S. sanctions by processing payments for Surge Capital Ventures, a firm previously accused by the SEC of running a Ponzi scheme that defrauded church members of $35 million. Damian, acting as a court-appointed receiver, alleged Deel was responsible for facilitating the payments.
While Deel tied the Florida case to Rippling’s ongoing lawsuit in California, both citing RICO (Racketeer Influenced and Corrupt Organizations Act) violations, Rippling CEO Parker Conrad denied any involvement, writing on X: “This litigation has nothing to do with Rippling, we are not a party to it, did not fund it.”
Rippling’s California lawsuit centers on different allegations, including claims that Deel engaged in corporate espionage and trade secret theft. The case involves testimony from Keith O’Brien, a former Rippling employee who admitted to working as a paid spy for Deel. O’Brien later obtained a restraining order, claiming he and his family were being followed by individuals linked to Deel.
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Deel has acknowledged hiring “discreet surveillance” of O’Brien, contradicting earlier denials. Meanwhile, Rippling’s lawsuit directly names Deel founder and CEO Alex Bouaziz and his father, Philippe Bouaziz, the company’s CFO.
Following the Florida dismissal, Deel said the ruling raises questions about the credibility of Rippling
