If you were hoping this HR tech feud would cool off, Friday had other plans. US District Judge Charles Breyer in San Francisco refused Deel's bid to strike the testimony of Keith O'Brien, a key figure in the dispute. In July, Deel moved to bar O'Brien's testimony because he refused to respond to over 100 questions and requests for information, invoking the Fifth Amendment along with other objections. Breyer called Deel's request improper, noting the company "actively avoided efforts" to resolve fights over the testimony and would not accept assurances from O'Brien's lawyer that he would not assert the Fifth Amendment.
Breyer likewise reaffirmed his February ruling that lets Rippling press claims accusing Deel of breaching federal racketeering and trade secret statutes, adding that he would not "reopen issues already settled."
Breyer granted Rippling's request to send racketeering claims that Deel filed against Rippling into private arbitration. He also tossed some of Deel's false advertising allegations while allowing others to continue under the federal Lanham Act. Without addressing the merits, the court allowed portions of Deel's 32 Lanham Act counts to continue in areas alleging that Rippling issued false or misleading statements to clients, dismissing other Lanham Act claims. Deel is permitted to amend and submit anew several of the claims that were dismissed.
Separately, Breyer threw out Deel's cybersquatting and trademark causes of action connected to Rippling's purported use of a deal.com URL to direct visitors to Rippling's website.
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This is the latest turn in a legal fight running for more than a year between two multibillion dollar, venture backed startups. Rippling first sued in March 2025, alleging Deel paid Rippling employee Keith O'Brien to covertly collect confidential information from inside the company. Deel denies that accusation.
Rippling, meanwhile, rejects Deel's separate assertions that the employee was a whistleblower and that Rippling pressured him to present a skewed account.
Rippling's readout on Friday: "Deel's efforts to avoid facing justice continue to collapse." Representatives for Deel did not immediately respond to requests for comment. A lawyer who has represented O'Brien also did not immediately respond.
Net effect: the courtroom overhang lingers. Rippling keeps its marquee claims in open court, while Deel moves major counterclaims to arbitration and must patch other areas. For everyday investors, that means the uncertainty that can weigh on hiring platforms and adjacent software tools is set to stick around, and discovery is likely to keep generating headlines.
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