Human resource startup Deel’s communications chief, Elisabeth Diana, has resigned amid allegations of corporate espionage involving CEO Alex Bouaziz.

Diana, who joined the company in 2021, stepped down last week, according to a source familiar with the matter.

Deel is currently facing a lawsuit from competitor Rippling, which claims the company paid a former employee, Keith O’Brien, to spy on its operations.

Deel has denied the allegations, calling them “baseless” and plans to challenge them in court.

In an affidavit filed with Ireland’s High Court, O’Brien alleged that Bouaziz recruited him for espionage and paid him US$6,000 per month to leak Rippling’s confidential information.

He also claimed Bouaziz advised him to flee to Dubai after his identity was revealed and told him to destroy evidence by smashing his phone with an ax.