Rippling-Deel RICO claims survive — DOJ opens criminal investigation into Deel
A federal judge let RICO and trade-secret claims proceed. The DOJ has opened a criminal investigation. Vendor-stability risk on the Deel side has increased materially.
In February 2026, a San Francisco federal judge ruled that Rippling had adequately alleged RICO (Racketeer Influenced and Corrupt Organizations) and trade-secret violations against competitor Deel, allowing the corporate-espionage lawsuit to proceed past Deel’s motion to dismiss. Deel acknowledged a $6,000 payment to a former Rippling employee but disputed Rippling’s characterization of the arrangement.
Subsequently, the US Department of Justice opened a criminal investigation into Deel’s recruitment practices. In a March 2026 development, an Irish court ruled that three Deel executives can be removed as individual defendants while the corporate entity remains.
Buyer-side takeaway
For companies actively evaluating Rippling or Deel — particularly for global EOR, contractor management, or international payroll — the active criminal investigation is a relevant due-diligence input. Vendor-stability risk on the Deel side has increased materially. This is not a settled matter; expect more news.