Deel loses bid to bar key witness in Rippling spy case, Bloomberg reports

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Image Credits Credit: deel
US federal judge on Friday rejected Deel’s bid to block testimony from a key witness in Rippling’s corporate espionage lawsuit, as Peter Blumberg reported for Bloomberg.Judge Charles Breyer also refused to revisit his February ruling, which let Rippling’s racketeering and trade secret claims go ahead. In addition, he sent Deel’s most serious counterclaims against Rippling to private arbitration.Rippling, which sells HR and payroll software, sued Deel in March 2025. It alleged that Deel paid a Rippling employee, Keith O’Brien, to secretly pass on confidential company information. Deel has denied the claims.

In July, Deel asked the court to block O’Brien’s testimony. He had declined to answer more than 100 of Deel’s questions and requests, citing his Fifth Amendment right not to incriminate himself, among other objections.

Breyer ruled that the request was improper. He said Deel had avoided efforts to resolve the dispute and had refused assurances from O’Brien’s lawyer that he would not use the Fifth Amendment, Bloomberg reported.

Deel’s counterclaims had alleged that Rippling pressured O’Brien to tell a false story, and that he was really a whistleblower who raised concerns about Rippling’s business practices. Rippling denies this.

The judge also dismissed Deel’s cybersquatting and trademark claims. These concerned a deal.com web address that Rippling allegedly used to send visitors to its own site.

However, Breyer let Deel pursue some of its 32 claims under the Lanham Act, a US false advertising law, that Rippling misled clients. He did not rule on whether those claims are true, and said Deel can revise and refile the claims he dismissed.

“Deel’s efforts to avoid facing justice continue to collapse,” Rippling said in a statement.

Deel did not immediately respond to Bloomberg’s request for comment. The case, People Center Inc. v. Deel Inc., continues in the US District Court for the Northern District of California. People Center is Rippling’s legal name.

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