In a shocking turn of events, Rippling, a workforce management platform, has publicly released an affidavit accusing Deel, its arch-rival in the HR tech space, of corporate espionage. The affidavit, signed by a former Rippling employee, alleges that Deel's CEO and CFO orchestrated a spying operation, offering the employee a substantial monthly payment to gather sensitive information about Rippling.

The affidavit, released on Wednesday, provides a detailed account of the alleged espionage, which took place over four months. According to the testimony, the employee, Keith O'Brien, was hired by Rippling in July 2023 and later approached by Deel's founder and CFO with a proposal to spy on Rippling in exchange for a €5,000 monthly payment. O'Brien allegedly conducted searches on Slack, Google Drive, and other Rippling resources, sharing information on sales leads, product roadmaps, customer accounts, and more with Deel.

The lawsuit, filed by Rippling last week, accuses Deel of violating the RICO racketeering act, misappropriating trade secrets, and engaging in unfair competition. The affidavit provides a dramatic account of how Rippling caught the alleged spy, using a sting operation involving a fake Slack channel and a threatening legal letter. O'Brien, believing he had been caught, attempted to wipe his phone and even smashed it with an axe, according to the testimony.

The allegations have sparked a heated response from Deel, which has denied all legal wrongdoing and accused Rippling of trying to shift the narrative. Deel's spokesperson stated that Rippling is attempting to distract from its own alleged violations of sanctions law in Russia. However, Rippling's attorney, Alex Spiro, believes they have a "smoking gun" and that the evidence will lead to Deel's leadership being held accountable.

The fallout from the allegations has already begun, with Eynat Guez, CEO of Papaya Global, a competitor to both Rippling and Deel, tweeting her support for Rippling's actions. The incident has also raised questions about the cutthroat nature of the HR tech industry, where companies are willing to go to great lengths to gain a competitive edge.

This is not the first time Rippling and Deel have clashed. Last year, Rippling launched a marketing campaign called "Snake Game" that pitted itself against Deel, but the campaign was met with backlash online. The latest allegations have added fuel to the fire, highlighting the intense rivalry between the two companies.

As the drama unfolds, it remains to be seen how the allegations will impact the HR tech industry as a whole. One thing is certain, however: the stakes have never been higher in the battle for dominance in this rapidly growing market.