Elisabeth Diana, the head of communications at human resources startup Deel, has parted ways with the company, according to her LinkedIn profile. This development comes amidst a high-profile scandal involving allegations of corporate espionage against rival company Rippling.

Diana's departure was first reported by Bloomberg, and TechCrunch has been unable to reach her for comment. Her LinkedIn profile shows that she joined Deel in November 2021 and stopped working there in April 2025. Prior to Deel, Diana held senior communications roles at Instagram and Facebook.

The controversy surrounding Deel began on March 17, when Rippling, a workforce management platform, filed a lawsuit accusing Deel of spying on its operations. The lawsuit alleges violations of the RICO racketeering act, misappropriation of trade secrets, and unfair competition. Rippling claims that Deel planted a spy, Keith O'Brien, within its organization to gather sensitive information.

O'Brien's affidavit, released on April 2, provides a detailed account of the alleged espionage, including a sting operation and a smashed phone. The accusations have sparked widespread concern about the ethics and practices of Deel, which was last valued at $12.6 billion and has been backed by prominent investors such as General Catalyst, Andreessen Horowitz, Spark Capital, and Y Combinator.

Deel has responded to the lawsuit, denying "all legal wrongdoing" and claiming that Rippling is attempting to "shift the narrative" from its own alleged violations of Russian sanctions. However, the company has not provided further comment on the matter. The future of Deel, which was reportedly considering an initial public offering (IPO) just two months ago, remains uncertain.

The implications of this scandal extend beyond Deel and Rippling, highlighting the need for greater transparency and accountability in the tech industry. As the startup ecosystem continues to grow, instances of corporate espionage and unethical behavior can have far-reaching consequences for investors, customers, and the industry as a whole.

Deel's valuation and reputation are likely to take a hit in the wake of this scandal, and the company's ability to recover will depend on its response to the allegations and its commitment to rectifying any wrongdoing. As the situation unfolds, it remains to be seen how Deel's investors and customers will react to the news, and what steps the company will take to restore trust and credibility.