Per the agreement, ADP went on record stating there are no security concerns with Zenefits software, and Zenefits said it has no reason to believe ADP is unethical. The lawsuit was prompted when ADP cut off Zenefits’ small business clients.
ADP claimed it made the move due to security concerns, but Zenefits contested the move was retribution for launching a competing product. ADP proceeded to move forward with a lawsuit, however a California U.S. District Court judge said ADP did not have a viable case, resulting in the settlement by the two companies.