| Deel has accused Rippling of directing an employee to set up fake entities to pose as a Deel customer and scour the rival payroll startup's systems for contracts, policies and pricing information, the latest twist in a long running battle between the two HR software firms. The accusations form part of an amended complaint Deel filed in a Delaware court on Tuesday against Rippling. Deel has alleged Rippling defamed and defrauded Deel. Deel's lawsuit was filed as a counterclaim to Rippling's earlier accusations that Deel's top executives recruited and paid a Rippling employee to spy on the company. Deel's amended complaint alleges Rippling manager Brett Johnson, who worked in the company's Competitive Intelligence Unit, impersonated a Deel customer to gain access to Deel's systems and download pricing and policy information relating to Deel's operations in 34 different jurisdictions. Deel based its allegations on a review of a customer account it has tied to the Rippling employee. Johnson allegedly downloaded the information under the guise of a fictitious business entity—Quandary Insights, LLC—over a period of six months through November 2024. The Quandary Insights customer profile at Deel was created a month after Johnson began working for Rippling, Deel alleged. An investigation by Deel revealed the Gmail account used to set up Quandary's customer profile had the same profile picture used by Johnson on his public LinkedIn account, Deel alleged. A Rippling spokesperson said the company's policy on competitive intelligence directs employees to use their real names and Rippling emails and bans fake accounts or companies. The policy allows Rippling employees to learn about non-confidential documents that the company defines as "anything that a competitor salesperson would tell a prospective customer." "We expect full compliance as described clearly in our written policies," the Rippling spokesperson said. Johnson did not respond to requests for comment. Deel's amended complaint filed on Tuesday also dropped some earlier allegations the company had made when it originally filed its lawsuit in April. That included claims that Rippling had "a spy inside Deel" that had allegedly fed information relating to Deel's board discussions to The Information. Also removed from Deel's new filing were allegations that Rippling did not remit customers' payroll tax and social benefits dollars to the correct tax authorities as required but reported these funds as its own earnings. | 
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