Runlayer Files Suit Against Rippling Alleging Trade Secrets Misappropriation in SDNY Over AI Product 'Clone'; Seeks Preliminary Injunction

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Runlayer Files Suit Against Rippling Alleging Trade Secrets Misappropriation in SDNY Over AI Product 'Clone'; Seeks Preliminary Injunction

PR Newswire

Rippling has been preparing to launch a competing product built on Runlayer's technology, text messages from Rippling engineer show

NEW YORK, July 28, 2026 /PRNewswire/ -- Today in the Southern District of New York, Runlayer, the platform helping companies become AI-native through the securely managed deployment of AI agents, filed a complaint against Rippling, an HR and workforce-management software company, alleging trade secret misappropriation, unfair competition, and breach of contract. Runlayer also seeks a preliminary injunction and expedited discovery.

The complaint alleges that Rippling misappropriated Runlayer's trade secrets and violated confidentiality agreements during the course of a nearly year-long commercial relationship between the two companies and is preparing to launch a competing product built on Runlayer's technology.

Following a product trial between the companies, an insider at the $16.8 billion Rippling texted Andrew Berman, CEO of Runlayer, that "There's been a project internally [at Rippling] to build essentially a clone" of Runlayer that is "almost a 1 to 1 copy of Runlayer."

"Runlayer invests heavily in its innovations and proprietary technologies and will vigorously defend its intellectual property," said Mr. Berman. "Our platform is built on two equally critical pillars, AI enablement and control, that together help our customers safely and fully adopt AI agents. We work with customers and partners across the world in an environment of mutual trust, and just as we protect our customers, we have no choice but to ensure that competitors like Rippling cannot breach our confidentiality agreements or misappropriate our trade secrets."

Runlayer has secured $42M in funding, with backing from investors including Khosla Ventures and Felicis. In just eight months since emerging from stealth, the company has become a market leader in helping enterprises adopt AI securely.

Runlayer is represented by Sullivan & Cromwell LLP.

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SOURCE Runlayer