Connect with us

Tech

New corporate espionage claims emerge, centered on two highly valued 401(k) admin startups

Published

on


Another gripping allegation of corporate espionage has emerged from the profoundly boring world of employee onboarding platforms and 401(k) administration.

All year, we’re been following the ongoing death match between HR software titans Rippling and Deel, which are currently locked in a litigation featuring accusations of planted moles and systematic data theft. Now, as first spotted by Axios, comes Act Two: the 401(k) management unicorns, Human Interest and Guideline, squaring off in federal court with allegations so brazen that they’re embarrassing.

Here’s a taste, plucked from Human Interest’s lawsuit against Guidewire, filed this month in Utah federal court: “We are going to tear apart HI. It’s going to be the easiest thing to do.”

That’s Brandon Sterri texting his brothers on January 29. According to the complaint, Brandon and his brother Brian were, at that moment, still drawing paychecks from Human Interest, still logging into their company-issued laptops every morning beneath reminders that access was “limited to authorized personnel,” and that they’d agreed “to protect confidential data.” Their third brother, Eirik, worked for the competition, Guideline.

Per the lawsuit, filed by a law firm in Salt Lake City, the Sterri brothers didn’t just talk big. They allegedly called their operation the “Sterri Takeover,” a name revealing either remarkable hubris or a serious misunderstanding of how corporate espionage is supposed to work, which is to say, very, very quietly.

The complaint alleges a months-long scheme in which Brian and Brandon, working as junior inside sales representatives at Human Interest, systematically funneled their employer’s most sensitive intelligence, including partnership leads, customer data, and internal strategy documents, directly to Guideline.

But not just to anyone at Guideline; Human Interest claims the brothers were personally sharing it with the company’s chief executive, Kevin Busque, and its chief financial officer, Steven Wu.

Techcrunch event

San Francisco
|
October 27-29, 2025

Reached for comment earlier, a Guideline spokesperson sent the following statement: “Guideline believes allegations in this lawsuit are false and without merit. We are vigorously defending ourselves and we look forward to presenting the facts and showing that these claims are unfounded.”

Human Interest did not respond to TechCrunch’s request for comment.

According to Human Interest’s complaint, two days after Brian Sterri resigned from Human Interest on February 24, he made a request that allegedly exposed the entire operation. “Got a big favor to ask,” he allegedly texted a former colleague named Castro, still employed at Human Interest. Then came the ask: “A screenshot of total lead flow for ISR team this month.”

According to the complaint, Castro, perhaps understanding more than she let on, replied: “Am i allowed to ask why.” Brian responded with a grinning emoji.

The screenshot Brian wanted wasn’t just sensitive; it was, according to Human Interest, the crown jewels. Total lead flow represents the fundamental pool of potential clients, the critical determinant of growth trajectory and market penetration. It is information Human Interest has spent years and millions of dollars cultivating through proprietary business processes and partnerships with payroll providers. The kind of information that, in the wrong hands, creates what the lawsuit calls “a significant informational imbalance” and provides “considerable strategic advantage.”

Reading the complaint, it appears that Castro grasped the gravity of what Brian was asking and the transactional nature of the betrayal. “I’m down to play dirty for sure but you need to get me a job lol.”

Brian, the lawsuit alleges, brazenly promised her employment at Guideline in exchange for the data. When Castro didn’t immediately deliver, Brian tried again the next morning: “I still need that favor.”

“Brian you know I can’t do that,” Castro allegedly replied.

According to the complaint, Brian didn’t stop there. He allegedly called and texted and texted and when Castro stopped responding, his wife McKenna reached out on his behalf. During conversations with other Human Interest employees, the complaint claims Brian admitted his purpose outright: He wanted the information because “Guideline wanted to know HI’s total lead flow.”

The complaint paints a picture of systematic infiltration. Before their resignations, the brothers allegedly downloaded documents with titles like “Leads Data” and emailed files from their work accounts to personal Gmail addresses —Brian’s, and his wife’s. By logging into personal email on company laptops, they could bypass Human Interest’s detection systems entirely.

On February 27, allegedly, the same day Castro shut him down, Brian reached out to another Human Interest employee, Chloe Garza, with whom the Sterris had “close personal and/or familial relationship,” per the complaint. The request: internal metrics from a Slack channel. Garza also refused: “Yea so I cannot send you anything HI related.”

Brian’s response is telling as characterized in the complaint. Allegedly, in the same conversation, he wrote that “Mitch [another HI sales rep] would be the only person that could really give me the information GDL [Guideline] would want.” The complaint argues that the admission is right there, preserved in text.

After Human Interest’s leadership held emergency meetings to remind employees of their confidentiality obligations, the complaint alleges, Brian mocked the effort. “lol Horne using fear tactics lmao,” he texted Castro. “Heard today scared a lot of people.”

What elevates this from garden-variety corporate misbehavior to alleged racketeering is the alleged involvement at the top. Human Interest claims this wasn’t rogue employees gone wild but instead a coordinated operation with executive blessing.

After Human Interest sent cease-and-desist letters in early March, it says, Eirik Sterri texted his brothers with an update. He’d spoken with Andrew Conley, Guideline’s Senior Vice President of Sales. The message: “Andrew is great. Also everyone has your backs for real. Everyone has expressed how fired up they are about the situation. It will blow over and all of us will be so fired up.”

Then came what Human Interest characterizes as extortion. Guideline had agreed to be acquired by Gusto, the $9.3 billion payroll giant, for what TechCrunch reported earlier this month to be a $600 million deal. As part of the transaction, Guideline planned to divest certain assets and accounts associated with rival payroll companies. When Human Interest inquired about purchasing some of those assets, Guideline’s CFO allegedly delivered an ultimatum: drop the lawsuit, or the deal is off.

TechCrunch’s Marina Temkin reported that Gusto was looking to sell off Guideline’s accounts associated with rival payroll companies, per several sources, but Gusto declined to comment on those divestment plans at the time. 

TechCrunch reached out to Gusto again earlier today. The biggest question, of course, is whether it plans to go through with its Guideline acquisition. The company has not yet commented.

Naturally, much is being made in the startup ecosystem about the HR software space becoming a theater of corporate warfare, with Rippling and Deel battling over allegations that include planted spies, and RICO violations, among other things.

Absurd as it sounds, this is serious business for Rippling and Deel, and the stakes are high, if not higher, for Human Interest, for the three Sterri brothers, and for Guidelines and its executive team, among others. 

Human Interest has raised over $700 million at a $1.4 billion valuation from investors including SoftBank, Baillie Gifford, and TPG. Guideline raised $340 million, hitting a $1.2 billion valuation in 2021 with backing from General Atlantic and Felicis.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Tech

Waymo starts autonomous testing in Philadelphia

Published

on

By


Waymo is adding another four cities to its growing list of robotaxi rollouts. The company announced Wednesday it has begun testing its autonomous vehicles (with a safety monitor) in Philadelphia, and that it will start manual driving to collect data in Baltimore, St. Louis, and Pittsburgh.

Waymo did not offer a timeline for when it plans to launch commercial services in those locations, nor do we know whether the Alphabet-owned company will partner with other companies to operate robotaxis in each one. That has been the move in cities like Atlanta and Austin, for example, where Waymo has partnered with Uber to advance its robotaxi rollout.

But the new locations join a list of over 20 cities where the company is either offering rides, prepping a commercial launch, or testing. Waymo is also now offering rides on freeways in Los Angeles, Phoenix, and the San Francisco Bay Area. The company plans to be doing one million rides per week by the end of 2026.

Waymo has done all this while claiming to be operating at a level five times safer than humans, according to data the company recently released.

But the expansion has not come without its issues. The National Highway Traffic Safety Administration is investigating how the company’s vehicles operate near school buses, after a Waymo was filmed driving around a stopped bus in Atlanta in September.

This week, Austin news outlet KXAN published a report showing Waymo’s vehicles have driven past school buses that were in the process of unloading or loading children multiple times — including after Waymo claims to have shipped software updates to address the problem.

Techcrunch event

San Francisco
|
October 13-15, 2026

Continue Reading

Tech

Spotify Wrapped 2025 adds its first multiplayer feature with ‘Wrapped Party’

Published

on

By


Spotify Wrapped is back. After last year’s widely criticized flop that included an AI podcast as its highlight, the streamer’s highly anticipated annual review feature has returned to its roots. This year, Spotify is doubling down on what it knows works best: deep dives into your streaming data, creative experiences, messages from favorite artists, and other social features.

The company claims that Wrapped 2025 is its biggest, as it’s introducing nearly a dozen new features in addition to its old standbys, like top songs and artists. Plus, it’s offering more visibility into users’ data than in years past. For the first time, Spotify Wrapped is adding a live multiplayer feature to compare your listening data with friends.

Wrapped Party, Wrapped’s first live interactive experience, allows you to invite up to nine friends to compare listening stats.

Image Credits:Spotify

Also new this year, your Top Songs Playlist will include the play counts for each of the top songs, so you can actually see how much time you spent with your favorite tracks.

Other standout features this year include an interactive Top Song Quiz, a Listening Age feature, and Wrapped Clubs, which match you to one of six unique listening styles.

The company believes these additions will not only bring back the personalized, engaging experience that users have long expected from Wrapped, but will take it a step further by making it more interactive than before.

In the Top Song Quiz, for instance, you can try to guess which top song soundtracked your year before seeing the results.

Techcrunch event

San Francisco
|
October 13-15, 2026

Image Credits:Spotify

The new interactive Wrapped Party feature isn’t just about comparing the personal streaming data you’ve already received to your friends’ data, as that’s something people already do on social media. Instead, the feature presents unique data stories for your group, like who’s the “most obsessed fan,” the “early bird,” the most “picky listener,” or even something as nice as the “dinner table explainer,” meaning the person who listens to the most news podcasts.

Image Credits:Spotify

Spotify says these awards update dynamically every time you join a Wrapped Party, so no two sessions are ever the same — even if you run through them again with the same group of friends.

The new Wrapped Clubs, meanwhile, will group you into one of half a dozen listening styles, like the “Soft Hearts Club,” the “Club Serotonin,” the “Full Charge Crew,” the “Cosmic Stereo Club,” and others. You’ll also receive a role in the club based on your listening data. You might be a club leader if your listening choices strongly matches the club’s values, a scout if you’re always seeking out new releases, or an archivist if you listen to music from past eras.

Image Credits:Spotify

Another feature, Listening Age, compares your 2025 music listening to others in your age group. To calculate your age, the feature considers the release years of the tracks you listen to most. From there, it identifies the five-year span of music that you engaged with more than other listeners your age.

Image Credits:Spotify

As in prior years, you’ll see your top songs, top artists, top genres, and, for the first time, top albums. If you engaged with audiobooks and podcasts, you’ll see metrics for those as well. Artists, writers, and podcasters will have their own version of Wrapped as before. And top fans will again receive video messages from their favorite artists, podcasters, and, now, authors.

You’ll also receive a playlist of your top songs of the year, as before.

Image Credits:Spotify

What you won’t find in this year’s Wrapped is any feature that advertises it was made with AI.

In a press briefing on Tuesday, Spotify’s Senior Director of Global Marketing, Matt Luhks, admitted the company received a “lot of feedback” about its 2024 AI-focused Wrapped experience, saying it was a “mix of positive and ‘more constructive feedback,’” despite the feature driving more engagement than prior years.

“We take all of that in. We use that as information, insights, [and] inspiration for how we approached Wrapped this year,” he said in a press event ahead of today’s launch.

“What our users tell us about Wrapped means a lot to us, so it was really informative in how we approached Wrapped this year. And what we tried to build was the most creative, most innovative, most engaging Wrapped ever,” he added, setting a high bar for the 2025 edition of the now 11-year-old annual year-in-review feature.

“We’re the original and, we believe, still the best,” Luhks said.

Image Credits:Spotify

Still, AI was a part of the Wrapped experience. Though the company claims the overall experience was not made with AI, it does leverage a LLM (large language model) to add a storytelling layer to Wrapped’s facts and figures, and natural language summaries in other parts of its experience, looking back on your data.

Spotify’s attempt to fix Wrapped after a notable stumble comes as the streamer faces increased competition from Apple, Amazon, YouTube, and others, which have all launched their own annual review features, inspired by Wrapped.

“Everyone seems to have their own version of Wrapped. Now, there’s a lot of reviews and replays and rewinds out there, but we believe that Wrapped still sets the bar for these year-end recaps,” Luhks said.

Along with the consumer experience, Spotify shared its top artists, songs, albums, podcasts, and audiobooks for the year, with top winners that included, respectively, Bad Bunny (top song and album), Joe Rogan (“The Joe Rogan Experience” podcast), and Rebeca Yarros (author of “Fourth Wing”).

Continue Reading

Tech

Nothing looks to its community to raise $5M, wants to be ‘IPO-ready’ in 3 years

Published

on

By


Hardware maker Nothing is letting its user base buy its stock as part of a new community investment round of $5 million. The new round, which opens on December 10, will enable consumers to buy the company’s shares at its Series C valuation of $1.3 billion.

The company said it has so far raised $8 million in total from over 8,000 people across two previous community investment rounds. It held its first community funding event in 2021, aiming to raise $1.5 million.

“This isn’t about raising capital, it’s about giving our community/fans a chance to invest while we’re private and join us on the journey,” a spokesperson for Nothing told TechCrunch.

Community investors have a rotating seat on the company’s board, but it is unclear what else they get for investing in the company through such rounds.

Nothing raised $200 million in its Series C back in September from investors including Tiger Global, GV, Highland Europe, EQT, Latitude, I2BF and Tapestry. The company has raised $450 million to date.

The community round comes as Nothing makes changes to its corporate structure as it tries to increase its share of a smartphone market dominated by giants like Samsung and Apple. The company is spinning off its budget CMF brand, and plans to explore AI-centric devices while it keeps building smartphones and audio products. And Nothing claims it crossed $1 billion in cumulative revenue this year, up 150% from 2024.

The startup is working to be “IPO-ready” in three years, CEO Carl Pei told TechCrunch in an email. “The timing will depend on market conditions and what makes sense for the business at that point in time,” he said.

Techcrunch event

San Francisco
|
October 13-15, 2026

“What’s important is that we’re already operating with that discipline now. We’re building the systems, the governance, the financial discipline that a public company needs. It forces us to think longer-term and make smarter decisions that prioritise sustainable growth,” Pei added.

It’s not clear if Nothing aims to raise another round before an IPO. When asked about its fundraising plans, a Nothing spokesperson said the company is not thinking about raising capital immediately, but it wouldn’t be averse to those conversations.

Those interested in investing in the community round can use platforms like Wefunder and Crowdcube to participate.

Continue Reading

Trending