The Justice Department has reportedly opened a criminal investigation into the HR and payroll startup Deal for allegedly hiring a corporate spy to leak information about its biggest rival, Rippling. The Wall Street Journal.

In an emailed statement to TechCrunch, Deel said it was “not aware of any investigation. We will always cooperate with the relevant authorities and provide necessary information in response to legitimate inquiries.”

Deel’s statement then makes his own accusation against Rippling. It pointed to its own lawsuit alleging that its rival had run a “smear campaign,” claiming it was beating competitors in the market, and adding, “Truth will prevail in court.” Rippling declined to comment.

This is arguably the biggest play between the two HR startups.

In summary, Ripling sued the deal In May, and Amendment of the June caseAlleged that his rival planted a corporate spy. Rippling employee caught up in a sting operation and admits being a paid spy for deals in an Irish court Written affidavits read like a Hollywood movie. The employee testified that he took Ripling’s sales leads, product roadmaps, customer account information, names of Superstar employees, whatever was requested, and handed them over to deal executives.

Ripling’s lawsuit, which is ongoing, accuses his rival of violating the federal racketeering statute (known as the RICO Act and commonly used against organized crime), among other laws it cites. But despite the use of phrases like “criminal syndicate”, this was a civil case, not a criminal one.

In contrast to Deal Ripling, among other claims, one alleged spying by impersonating a customer.

Spies lived in fear

The man who admitted to the spying has agreed to testify in Ripling’s case and Ripling has agreed to pay his legal and travel expenses, according to the man’s cooperation agreement released as court documents and seen by TechCrunch. Deal is now calling the man Ripling’s “paid witness.”

But the man also went back to court claiming that it was his family Living in terror because he trusted the men of Dil was following him. Dil’s lawyer initially denied the matter Later discovers that Deal hires surveillance.

Paying spies

Rippling’s most recent win came in late November, When it receives bank records. Records indicate that Deal transferred the funds to an account held by Deal’s COO’s wife, and 56 seconds later that account transferred the same amount to an account held by the confessed spy.

Meanwhile, another court document shows that Deal founder and CEO Alexander Boaziz, who Ripling’s lawsuit calls the “mastermind” of the espionage conspiracy, has hired high-powered lawyer William Franzen to represent him. Franzen is a partner in Morrison Foerster’s white-collar defense group and previously headed the corporate and securities fraud unit of the U.S. Attorney’s Office for the Northern District of California.

Ripling’s lawyer is none other than Alex Spiro of the white-shoe law firm Queen Emanuel. Spiro is a former Manhattan District Attorney’s Office prosecutor known for his big personality and long list of celebrity clients, from Elon Musk to Jay-Z.

So it sounds like a plot from a John Grisham novel, with the show “Suits” sprinkled on top.

None of this has stopped investors from backing the deal or Ripple. In October, Deel announced it was a hit A $17.3 billion valuation After raising $300 million led by Ribbit Capital and Andreessen Horowitz. Rippling injury a $16.8 billion valuation in May After raising $450 million from investors like Elad Gil, Goldman Sachs Alternatives, and Y Combinator.