Judge denies Deel bid to strike Rippling witness and sends counterclaims to arbitration
- Place in VP50
- #34
- Sources
- 4
- Claims verified
- 5 of 5
What happened
On September 25, 2026, U.S. District Judge Charles Breyer issued an order in People Center, Inc. v. Deel, Inc., the case Rippling, legally named People Center, brought against Deel in March 2025 in the Northern District of California. According to the order, the court denied Deel's motion to strike an affidavit from Keith O'Brien and granted Rippling's motion to compel arbitration of several of Deel's amended counterclaims. Bloomberg reported that the judge also declined to revisit an earlier decision letting Rippling's claims proceed; The Next Web said that February ruling covered the racketeering and trade-secret claims.
Bloomberg said the judge dismissed several of Deel's false advertising claims against Rippling and let some go forward. The Next Web, citing Bloomberg, reported that Deel may revise and refile the dismissed claims, that cybersquatting and trademark claims over a deal.com web address were dismissed, and that O'Brien declined to answer more than 100 of Deel's questions and requests, citing the Fifth Amendment and other objections. Deel has denied Rippling's allegations and did not comment in the reports. Rippling said Deel's efforts to avoid facing justice continued to collapse. The sources read stated no damages figure and no trial date.
Key points
- Judge Charles Breyer's order in People Center v. Deel is dated September 25, 2026.1
- Deel's motion to strike was denied, and several of its amended counterclaims were sent to arbitration.12
- The judge declined to revisit his February 2026 ruling that let Rippling's racketeering and trade-secret claims proceed.123
- Some of Deel's 32 Lanham Act claims were allowed to continue and several false advertising claims were dismissed.23
- O'Brien declined to answer more than 100 of Deel's questions and requests, citing the Fifth Amendment and other objections.3
Why it matters
Rippling's racketeering and trade-secret claims remain in the case after the judge declined to revisit his February ruling. The sources read give no damages amount, so the size of the exposure is not stated.
Deel's most serious counterclaims were sent to arbitration, which The Next Web describes as private, instead of being heard in this court.
Some of Deel's false advertising claims against Rippling survive, and the ones dismissed may be refiled. Litigation over the dispute therefore remains open for both companies.
In context
| Round | Date | Post-money valuation | Raised | Led by |
|---|---|---|---|---|
| Series B | Sep 2020 | $225M | $30M | Spark Capital |
| Series C | Apr 21, 2021 | $1.3B | $156M | YC Continuity Fund |
| Series D | Oct 18, 2021 | $5.5B | $425M | Coatue |
| Series D extension | May 11, 2022 | $12B | $50M | Emerson Collective |
| Series E | Oct 16, 2025 | $17B | $300M | Ribbit Capital |
Updated
Fact-check
- Judge Charles Breyer issued the order on September 25, 2026 in People Center, Inc. v. Deel, Inc.Confirmed by [1] the N.D. Cal. order (via vLex), dated September 25, 2026, Judge Charles R. Breyer, No. 25-cv-02576-CRB; [2] Bloomberg News dates its report September 26 and says the ruling came Friday.Verified
- The court denied Deel's motion to strike and ordered several of Deel's counterclaims to arbitration.Confirmed by [1] the order, which denies the motion to strike and grants the motion to compel arbitration of several counterclaims; [2] Bloomberg News says Deel's most serious counterclaims were sent to arbitration.Verified
- The judge declined to revisit his February 2026 decision letting Rippling's racketeering and trade-secret claims proceed.Confirmed by [2] Bloomberg News, which says he declined to revisit the earlier decision; [1] the order records the February 23, 2026 ruling on the RICO claim; [3] The Next Web names the February ruling and the claims.Verified
- Rippling sued Deel in March 2025.Confirmed by [1] the order's background section and [3] The Next Web, citing Bloomberg.Verified
- Some of Deel's 32 Lanham Act claims continue, and O'Brien declined to answer more than 100 of Deel's questions and requests.Stated by [3] The Next Web, citing Bloomberg. [2] Bloomberg News confirms some false advertising claims were dismissed and some continue but does not give these two figures in the part read.Verified
Sources
- [1]U.S. District Court N.D. Cal. (via vLex) (opens in a new tab)People Ctr. v. Deel, Inc., 25-cv-02576-CRB (N.D. Cal. Sep 25, 2026)In March of 2025, Rippling sued Deel.
- [2]Bloomberg News (opens in a new tab)Deel Dealt New Setbacks in Rippling Case Over Alleged SpyingDeel's efforts to avoid facing justice continue to collapse.
- [3]The Next Web (citing Bloomberg) (opens in a new tab)Deel loses bid to bar key witness in Rippling spy case, Bloomberg reports
- [4]Bloomberg (opens in a new tab)Deel Dealt New Setbacks in Rippling Case Over Alleged Spying
