Payroll services giant ADP filed a defamation lawsuit against Zenefits Tuesday, heating up a quarrel between the companies that ignited when ADP disabled Zenefits access to its systems for shared clients.
ADP says the company on June 4 disabled Zenefits access due to data security concerns and an alarming and excessive and unnecessary demand on ADPs servers. Zenefits disputes the claim, saying it has found no security threats, nor any data traffic spikes. The HR tech firm calls the move by ADP an anti-competitive fear tactic.
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