Artificial intelligence cybersecurity startup Runlayer sued HR technology firm Rippling in Manhattan federal court on Tuesday for allegedly stealing its trade secrets to build a competing product.
Runlayer accused Rippling in the complaint of misusing its secrets after licensing its software to create what a Rippling employee allegedly called a "clone" of Runlayer's platform.
"Runlayer’s panicked effort to avoid competition by fabricating claims is not an effective way to deal with its business failures," a Rippling spokesperson responded in a statement. "Rippling is launching a superior product for connecting AI tools to business data using only our proprietary information — we have every reason to win in this market."
"Runlayer invests heavily in its innovations and proprietary technologies and will vigorously defend its intellectual property," Runlayer CEO Andrew Berman said in a statement.
New York-based Runlayer is backed by investors including Khosla Ventures and Felicis. Its platform monitors and controls how AI agents access enterprise software systems.
Rippling, which provides HR and workforce-management software, entered an agreement to try out Runlayer's software last year to manage its AI systems, the complaint said.
Runlayer said it suspended its services to Rippling in June after they could not reach a long-term agreement. According to the complaint, a Rippling "insider" later told Runlayer that there was a "project internally to build essentially a clone" of Runlayer that was "almost a 1 to 1 copy."
Runlayer asked the court to block Rippling from misusing its trade secrets or selling a competing product and requested an unspecified amount of monetary damages.
Rippling is also embroiled in a legal dispute with HR software rival Deel over accusations that Deel used a former Rippling company employee as a spy to steal its trade secrets. The employee confessed in an Irish court last year to spying for Deel.
Deel has denied the allegations and countersued Rippling for alleged racketeering and unfair competition.
The case is Runlayer v. Rippling, U.S. District Court for the Southern District of New York, No. 1:26-cv-06410.
For Runlayer: Andrei Iancu, Alexander Gross and Amy Proctor of Sullivan & Cromwell
For Rippling: attorney information not yet available
