Human resources software firm Rippling has filed a lawsuit against competitor, Deel, in the US.

District Court for the Northern District of California, alleging theft of trade secrets and violations of the Racketeer Influenced and Corrupt Organizations Act (RICO) Act.

The complaint claims that Deel hired an individual, referred to as “the Deel spy,” who accessed proprietary records, including sensitive customer data and internal sales strategies.

Rippling alleges the individual later met with Deel executives and shared internal Slack messages with a journalist.

The company says it discovered these activities earlier this month and obtained a court order in Dublin, Ireland, to preserve data on the individual’s phone, but they allegedly attempted to delete evidence.

Deel has denied the allegations, calling the lawsuit an attempt to shift focus from claims that Rippling violated sanctions laws in Russia.

Both companies are major players in HR software, with Rippling valued at US$13.5 billion and Deel at US$12 billion.