In a recent legal development, a Florida judge dismissed a lawsuit against HR and payroll services provider Deel. This case, initiated in January by Melanie Damian, accused Deel of facilitating Russian entities in circumventing U.S. sanctions by processing payments for Surge Capital Ventures. Surge had previously faced allegations from the U.S. Securities and Exchange Commission (SEC) for operating a Ponzi scheme that defrauded church members of $35 million. Damian, acting as a court-appointed receiver for Surge, sought to recover assets on behalf of the defrauded investors, alleging Deel’s involvement in processing these illicit payments.
Deel has characterized this lawsuit as Rippling-aligned and Rippling-supported, referencing its ongoing legal battle with competitor Rippling. However, Rippling CEO Parker Conrad clarified that his company was not involved in the Florida case, stating, This litigation has nothing to do with Rippling; we are not a party to it, did not fund it.
The dismissal of the Florida lawsuit marks a positive outcome for Deel amidst its broader legal challenges. The company is currently embroiled in a separate, high-profile lawsuit filed by Rippling in California. This case involves allegations of corporate espionage, with claims that a Rippling employee acted as a paid informant for Deel. Both lawsuits invoked the Racketeer Influenced and Corrupt Organizations Act (RICO), a statute originally designed to combat organized crime.
Deel’s spokesperson expressed optimism following the Florida court’s decision, suggesting it could influence the outcome of the California case. They stated, The ruling invites further questions about the credibility of another baseless set of RICO accusations by Rippling in California.
While the dismissal in Florida is a favorable development for Deel, the company continues to navigate complex legal waters, particularly concerning its contentious relationship with Rippling.
