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The fight between HR tech startups has heated up another notch this week as Rippling on Thursday filed an 84-page amended complaint<\/a> in its lawsuit against Deel.<\/p>\n The complaint accuses Deel of targeting, infiltrating, and compromising four other competitors, in addition to Rippling.\u00a0<\/p>\n The revised complaint doesn\u2019t name all of the four other alleged victims, except cryptocurrency-based tax and payroll compliance company, Toku. Toku is suing its competitor LiquiFilegal also alleging<\/a> corporate espionage, and that Deel was involved.\u00a0<\/p>\n The complaint alleges that \u201cVictim-3 is a startup accelerator that previously partnered with Deel.\u201d The complaint doesn\u2019t name, or even imply, who that is. (Y Combinator backed both Rippling and Deel but there\u2019s no indication this refers to the VC firm. YC has not yet responded to our request for comment.)<\/p>\n The complaint also vaguely says that there are one or more additional victims who are \u201cone or more major competitors of Deel\u201d in the employer of record market. A source familiar with the investigation believes that more witnesses will soon come forward at these other companies to offer details. (Deel did not immediately comment. We will update this story with its response once it does.)<\/p>\n Rippling\u2019s amended suit also alleges that Deel\u2019s CEO Alex Bouaziz was the direct mastermind of it all, sharing screenshots of messages<\/a> as its evidence. And, although this is a civil suit, Rippling is now implying that this could be a criminal matter.\u00a0<\/p>\n \u201cThis case is about a criminal syndicate that operated from the shadows of a multibillion-dollar technology company \u2013 Deel,\u201d the complaint reads.<\/p>\n Rippling\u2019s amended lawsuit is now suing Deel under the federal RICO statute, as well as the Defend Trade Secrets Act, and California state law. The lawsuit directly names Alex Bouaziz, his father Philippe Bouaziz who is chairman and chief financial officer, and Deel\u2019s chief operating officer Daniel Westgarth.<\/p>\n It\u2019s important to note that the lead attorney for Rippling is Alex Spiro of white-shoe law firm Quinn Emanuel. Spiro is a former prosecutor for the Manhattan District Attorney\u2019s Office. (He\u2019s well known in the legal world, and has his own Wikipedia page<\/a>.) Using words like \u201ccriminal syndicate\u201d in a civil case would be a deliberate choice.<\/p>\n According to the source familiar with the case, federal prosecutors are now actively looking into the allegations against Deel as well.\u00a0<\/p>\n An investigation, however, is not a conviction. But should charges be filed, Rippling is doing its best to set up Bouaziz himself as one of the people responsible. The complaint even goes so far as to repeatedly use the colorful language \u201cthe Bouaziz Racketeering Enterprise.\u201d\u00a0<\/p>\n Other than that, much of the amended complaint reiterates what Rippling has already alleged.\u00a0<\/p>\n To recap: a Rippling employee confessed to being a paid spy for Deel in an Irish Court, in an affidavit that reads like a Hollywood movie.<\/a>\u00a0The employee admitted in court to taking sales leads, product roadmaps, customer accounts, names of superstar employees, and whatever other information was asked for.<\/p>\n The employee was caught in a Rippling-set honeypot, both he and Rippling say. Rippling is suing Deel, alleging misappropriation of trade secrets, tortious interference, unfair competition, and more, largely based on the spying allegations.<\/p>\n Deel has counter-sued<\/a> in a case that is less about denying Rippling\u2019s charges and making a bunch of its own claims about Rippling. For instance, earlier this week, Deel filed an amended lawsuit that claimed that Rippling was spying on Deel by having an employee \u201cimpersonate\u201d<\/a> a customer to obtain non-public product information.<\/p>\n Grab some fresh popcorn. This battle between arch rivals shows no sign of slowing.<\/p>\n<\/div>\n