Israel Group News - July 2024

Welcome to the July 2024 issue of our global newsletter, Israel Group News, aiming to keep you informed about current developments, hot topics for your consideration, and DLA Piper activities that focus on bringing the dynamic Israeli ecosystem to your doorstep.

Although Israel remains at war, we have continued to provide a wide range of legal services to Israeli companies, investors, and entrepreneurs, as well as to businesses throughout the world seeking opportunities within the country. We view ourselves as an extension of the businesses we serve, and we aim to work with them for the long term, whether their needs involve day-to-day inquiries, smaller projects, special situations, or large-scale transactions.

For more general information about the Israel Group, click here. To gain a perspective on our advisor practice, the types of day-to-day guidance we provide, and our representative client list, click here. To access our 2023 Year in Review, click here.

In addition, to view our group’s overview video, click here. To watch the recap video of our 2023 DLA Piper Charity Basketball Tournament, click here. To view our New Year 2024 video with messages of support from colleagues and clients, click here.

Please do not hesitate to reach out if you have any questions or if we may be helpful in any manner. For new client requests, please send an email to israelclientrequest@us.dlapiper.com.

IsraelDesks rankings

We continue to be honored by our recognition in the market. Demonstrating the breadth of our practice, for the second year in a row, we are the only firm to be listed as an Elite Firm in every category by Legally Israel 100 - IsraelDesks League Tables, and we hold more number-one slots than any other firm. In addition, Jeremy Lustman (Partner, Head of Israel Group, Washington, DC and New York) has again been recognized as a Leading Individual (the top ranking), one of only six lawyers in the category.

In the Community video

Corporate social responsibility is a cornerstone of our practice. We feel strongly about supporting organizations that do good for various populations in need across Israel and aim to amplify their impact by sharing our charitable endeavors with our professional and personal networks. With that in mind, we are excited to present a video about our work in the community over the past few years. The organizations featured are near and dear to our hearts.

Breaking legal insights from DLA Piper

On July 1, a new California law went into effect that changes how added fees, such as service and delivery fees, must be disclosed to California consumers. In this alert, we answer some key questions about Senate Bill 478’s requirements and provisions.

On July 12, the European Union (EU) published Regulation (EU) 2024/1689, the world’s first comprehensive artificial intelligence (AI) regulation. Referred to as the AI Act, the regulation serves as a comprehensive, sector-agnostic regulatory regime intended to form the foundation of AI governance and regulation across the EU, with downstream implications for companies and developing legislation around the world. This update provides a high-level overview of the key elements of the AI Act.

Colorado has become the first US state to enact a regulatory framework governing the development and use of AI. The law will impose requirements on developers and deployers of high-risk AI systems. Read more in our recent alert.

Reporting issuers across Canada should be aware of a more expansive interpretation of the term “material change” under Canadian securities laws, which will be considered by the Supreme Court of Canada. Find out more in this Securities and Corporate Finance alert. 

The 2024 US Federal Budget proposes several changes to federal employment laws. In this employment law update, we look at the key changes federally regulated employers may see soon.

Our Global Litigation Guide covers key intricacies of civil litigation in more than 30 jurisdictions worldwide. Learn more here.

Recent matters

Below are some recent publicly announced Israel-related transactions in which we were involved:

• Advised SeaLights Technologies, an Israeli software development company, on the US aspects of its sale to Tricentis Corporation for USD150 million.
• Advised Gett, an Israeli taxi and transportation services company, on the UK aspects of its sale to Pango for USD175 million.

 

Global activity

We are proud to report that, in the second quarter of 2024, we commenced projects for 62 Israeli companies in the following 49 jurisdictions: Australia, Austria, Belgium, Brazil, Bulgaria, Canada, Chile, China, Costa Rica, Czech Republic, Denmark, the EU, France, Germany, Greece, Hong Kong, Hungary, India, Ireland, Italy, Japan, Kazakhstan, Malaysia, Mexico, Morocco, Netherlands, New Zealand, Norway, Peru, Poland, Portugal, Romania, Russia, Saudi Arabia, Serbia, Sierra Leone, Singapore, Slovakia, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, Ukraine, the UAE, the UK, and the US.

Below are some new representative matters in which we assisted Israeli companies around the world:

• Commercial issues in Australia, Brazil, Canada, Chile, Czech Republic, Denmark, the EU, France, Germany, Hong Kong, Hungary, Italy, Morocco, Netherlands, Norway, Poland, Romania, Russia, Saudi Arabia, Singapore, Slovakia, Spain, Thailand, the UAE, the UK, and the US
• Corporate and securities issues in Germany, Hong Kong, Morocco, Netherlands, Peru, Saudi Arabia, the UK, and the US
• Employment and employee benefits guidance in Australia, Austria, Belgium, Brazil, Bulgaria, China, Czech Republic, Costa Rica, Denmark, France, Germany, Greece, India, Ireland, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Portugal, Serbia, Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan, Turkey, Ukraine, the UAE, the UK, and the US
• Litigation and dispute guidance in Chile, Netherlands, the UK, and the US
• M&A and investment guidance in France, Germany, Italy, Netherlands, Spain, the UK, and the US
• Privacy guidance and compliance in Australia, Canada, the EU, Germany, Japan, the UK, and the US
• Real estate guidance in Australia, France, Germany, the UK, and the US
• Regulatory issues in Canada, Denmark, the EU, France, Germany, Hungary, Kazakhstan, Morocco, Norway, Sierra Leone, Singapore, Spain, Thailand, the UK, and the US
• Tax guidance in Germany, Ireland, Italy, Japan, Netherlands, Switzerland, Thailand, Ukraine, and the US

 

Colleague in the spotlight

Josh Kaufman
Partner and Co-Chair, Capital Markets and Public Company Advisory
Latin America Practice Group Leader, Capital Markets
New York, Miami

Please tell us about your area of practice.

I am a US corporate lawyer focused on capital markets and public companies. I work with global companies in growth industries, principally healthcare and technology, to help them access financing in the US; represent them in disclosure and other matters before the Securities and Exchange Commission (SEC); and serve as outside general counsel for all US legal and commercial needs. I also represent investment banks underwriting securities in the US issued by similar companies.

Over the past decade, I have come to focus on representation of foreign private issuers, which are non-US companies that are either more than 50 percent owned by non-US persons or those that are principally managed outside the US, whose assets are principally held outside the US, and a majority of whose directors and officers are non-US persons.

I have particularly enjoyed my work representing Israeli issuers that have accessed the US market, including Mobileye, Gamida Cell, PolyPid, and UroGen, as well as investment banks that are active in the Israeli market.

What piece of advice would you give Israeli companies who are trading or seeking to list in New York?

On July 1, Jeremy Lustman and I co-hosted a series of panels in Tel Aviv with the Israeli law firm Gornitzky GNY, Nasdaq (which joined virtually from London), and Barclays, Citi, and Stifel (which all had representatives in person), during which we posed this very question.

The panelists’ key advice was:

• Have the right team of financial and legal advisers in place
• Be prepared to access the markets when the window opens (there are currently green shoots and potential daylight in ‘25), and
• If not yet public, consider a pre-IPO crossover round to shore up US institutional investor support.

IPO candidates are expected to bring 100 percent of insider coverage to the table and should also expect a meaningful (20 to 50 percent) valuation discount to comps in this market (higher than the standard market 10 to 20 percent). I would add that, for pre-IPO companies, financial statements are typically a gating item to a public listing, particularly the Public Company Accounting Oversight Board-level review required for any issuer, including a Foreign Portfolio Investment reporting under International Financial Reporting Standards and national office review.

What challenges do Israeli companies face when it comes to the US market?

The current perception of the Israeli market from the US is hampered by the war in Gaza, which is creating complications from actual or perceived physical threats, military call-ups and reserve duty, and political instability.

Israeli issuers are encouraged to convey, to the extent applicable, the global nature of their businesses, particularly in technology or healthcare, in terms of operations (eg, locations of offices, employees, servers, labs) and customers.

The SEC has been particularly focused over the last nine months on risk factors related to the foregoing, so it is preferable for compliance as well as liability management to be explicit. For investor relations, it is generally valuable to have and – when and as needed – execute a backup plan, and to maintain relevant insurance and liquidity.

What place in Israel is at the top of your list to visit?

I love visiting Tel Aviv, despite having been more than a dozen times, and would gladly travel there again and again. It is a wonderful city to enjoy for a weekend or week. I particularly love the athletic culture of the beach, with everyone running, swimming, sailing, playing volleyball, or working out. The cultural life is world class; my favorite is the robust, energetic, organic Israeli modern dance of Bat Sheva Dance Company at Suzanne Dellal Dance Center in Neve Tzedek. Of course, the food is terrific as well – I never miss a chance to have a wonderful Israeli breakfast of fresh tomato and cucumber salad, eggs, smoked fish, and cheese.

If you could live in any time in history, which would you choose and why?

I would choose as far in the future as possible. In every century, humanity invents better technology and medicine to enable humans to live better and longer – though that is not to say more peaceably or even smarter.

But overall quality of life has consistently improved over the centuries, and my hope is that it will continue to do so, and we will see the reduction and elimination of key diseases that now plague humanity.

Likewise, improvements in technology will allow humans to explore and inhabit planets beyond earth, perhaps presaging a more unified home planet in response to external threats or to intergalactic opportunities.

Summer interns

We are delighted to once again welcome two summer interns to the team. Jessica Shade, a rising junior in the Gies College of Business at the University of Illinois Urbana-Champagne with a double major in Information Systems and Marketing, comes to us through the TAMID Group Fellowship. Ruthie Seidemann, a rising senior at the Sy Syms School of Business with a double major in Marketing and Strategy and Entrepreneurship, is part of the Yeshiva University Israel Summer Internship Program. Both interns are assisting the team with marketing, events, and business development efforts.

We asked our interns to interview each other about their summer internship experiences so far. Here is what they had to say.

What have you enjoyed most so far about working at DLA Piper?

Jessica: My favorite experiences have been the numerous meetings – with both clients and our colleagues around the world – that I have been able to join with Naomi Maryles and Jeremy Lustman.

From meetings with DLA Piper lawyers in France and Luxembourg, to speaking with general counsels of high-tech clients like Rapyd and OpenWeb, I have gained an understanding of how DLA Piper Israel acts as a true connector between the vibrant economy of Israel and the rest of the world.

Everyone that I have met during these meetings has been excited to teach me more about business and law in Israel, and also eager to hear more about my unique perspective and experiences as a college student in America.

Ruthie: My favorite experience so far has been sitting in on meetings and observing the different initiatives that DLA Piper is involved with. These meetings have given me a comprehensive understanding of the firm's strategic goals and the innovative projects it is pursuing.

It is inspiring to see how the firm collaborates with various parties to drive change within different industries and Israel (and beyond) as a whole. I have enjoyed meeting a variety of individuals, hearing their stories, and understanding their personal work and collaborations with DLA Piper. With each meeting, I gain a deeper understanding and appreciation for the work being done here.

Why was it important to you to come to Israel this summer?

Jessica: While I have tried to be an active advocate for Israel on my campus since October 7, I wanted to gain a better understanding of the reality here and be able to make a tangible positive impact.

Since traveling to Israel, first on my school’s Birthright Israel trip and now on the TAMID Fellowship, I can confidently say that being here – working within the Israeli ecosystem, volunteering in communities that are still suffering, walking around the site of the Nova Music Festival, and meeting Israeli relatives in person whom I had only ever met virtually – has shown me more about the strength and resilience of the people here than I could ever grasp from social media or articles in the news.

The skills that I have and will continue to learn by living and working in Israel this summer will be fundamental to my future, and I feel extremely grateful to have the opportunity to be here.

Ruthie: It was important for me to come to Israel this summer following October 7 and its aftermath. I wanted to support the country at this challenging time. While I have volunteered from afar during the past nine months, I knew I wanted to help firsthand in Israel.

By being here, I can actively participate in initiatives that help rebuild and strengthen our communities and the economy. I feel a pull to be here and contribute directly to our homeland. While I may not live here permanently (yet), I want to do everything I can to give back during my summer break.

I am grateful to DLA Piper for the opportunity to work here this summer, allowing me to gain invaluable experience and contribute to Israel in a meaningful way.

Professional events

On April 9, we hosted a workshop for our clients at the Sheraton Grand Hotel in Tel Aviv on the topic of navigating the evolving landscape of compliance.

Led by our esteemed colleagues Brian Benjet and Katie Hausfeld (Co-Chairs, Global Compliance, Philadelphia and Chicago), the workshop explored how companies should address new Department of Justice mandates on clawbacks, compensation, ephemeral messaging, AI – both as a tool for compliance programs and compliance considerations regarding the use of AI by businesses – and the ever-changing sanctions regimes.

The event included a networking breakfast, interactive roundtable discussion, and time for questions.

On April 10, we hosted our second networking dinner for partners and senior associates from Israeli law firms with whom we closely collaborate. The event, which took place at Whiskey Bar & Museum in Tel Aviv, once again brought together firms that are normally competitors in the market for an evening marked by camaraderie. We were honored to have Brain Benjet and Katie Hausfeld join us as well.

On May 20, DLA Piper’s newly formed Jewish Resource Group co-hosted an event on antisemitism along with US law firm Nelson Mullins. Over 85 members of the Miami community gathered to hear the Honorable Roy Altman of the US District Court for the Southern District of Florida and Jon Sale, former First Assistant US Attorney of the Southern District of Florida, as they discussed the historical context of antisemitism and its contemporary relevance, with the goal of deepening understanding, raising awareness, and fostering solidarity in combating this form of discrimination.

This was a critical conversation at a very challenging time for the Jewish community. The event was conceptualized and executed by Tal Aburos (Associate, Miami) with the support of Joshua Kaye (Managing Partner and Chair, US Healthcare, Miami). Jeremy Lustman and Ilana Eisenstein (Chair, US Litigation, Philadelphia), co-chairs of DLA Piper’s Jewish Resource Group, also attended this important event in person.

On May 21, we once again co-sponsored Axis Tel Aviv, Axis Innovation’s flagship conference about Israeli startups and global innovation. Members of our team attended the event at the Peres Center for Peace and Innovation. Axis Tel Aviv included over 25 startup pitches, panel discussions, and keynote speeches, and was attended by more than 50 investors and corporations and 70 Israeli startups. In addition, Imri Eisner (Partner, New York) moderated a panel on innovative technologies and key trends shaping the future of real estate and buildings.

From May 26–31, Jeremy Lustman served as a guest lecturer, alongside a number of DLA Piper colleagues, at a training course at the University of Western Cape in Cape Town, South Africa, to graduate law students from across Africa. Jeremy spoke about special economic zones as a tool for attracting foreign direct investment and increasing development. The firm’s global pro bono organization, New Perimeter, designed the course over a decade ago to expose Africa's future policy makers to the legal, policy, and regulatory concepts and practices of special economic zones, as well as to provide the students with professional legal and practical skills.

On June 9, Richard Zelichov (Partner, Los Angeles) presented via Zoom on the topic “Reducing Your Risk of US Securities Litigation” as part of a seven-week course offered by the Association of Corporate Counsel (ACC) Israel Chapter. The course, titled, “Corporate Governance and Global Aspects of Israeli Companies Traded in the US,” featured professionals from the fields of law, finance, business, and corporate governance with deep knowledge and experience in publicly traded Israeli companies in the US. We had the opportunity to meet Richard in person the following week, when he traveled to Israel to meet with clients and attend the final evening of the course.

On June 10, we co-hosted a Global Employment Law Forum along with Israeli law firm Herzog Fox & Neeman and Co. and the ACC. Titled, “Employment Law in a Changing World,” the forum addressed some of the current hot topics in Israel and around the world, including labor emergency legislation in the wake of the war; noncompete restrictions; environmental, social, and governance (ESG); and changing labor relations. Speakers appeared both in person and virtually.

Thank you to our DLA Piper colleagues who participated and shared their knowledge: Vinita Arora (Partner, London); Kai Bodenstedt (Germany Co-Managing Partner, Hamburg); Jasper de Bok (Senior Associate, Amsterdam); Anne Duchesne (Of Counsel, Paris); Ben Gipson (Partner, Los Angeles); Pilar Menor (Global Co-Chair Employment, Madrid); and Iain Skinner (Partner, Dubai).

On the evening before the forum, we hosted a client dinner at Malka TLV. Kai Bodenstedt and Ben Gipson led an informal conversation on employment hot topics – such as managing biases of AI in employee selection, noncompete laws in different countries, and how companies respond to questionable employee social media posts – in an intimate setting. While they were in Israel, Kai and Ben also met with a number of clients to discuss their global employment needs.

On June 27, we brought this year’s Yeshiva University Israel Summer Intern Program cohort to visit our client Wix at their brand-new headquarters in Tel Aviv. After a tour of the state-of-the-art campus, we had the privilege of hearing from a panel of veteran and recent olim – Lior Saar (Deputy General Counsel); Yoav Cohen (Head of Education, Velo); Sarah Hindman (Head of Company, WIX Showcase); and Jonathan Sitbon (UX Content Writer) – about their roles at Wix and their experiences as immigrants in the Israeli work force.

The panel discussed if and how serving in the army or national service impacts work culture, shared that proving oneself is often more important than having a particular educational background or degree, and highlighted the value of speaking more than one language in the Israeli tech ecosystem.

On July 1, we co-hosted along with Israeli law firm Gornitzky GNY an event for Israeli companies trading or seeking to list in New York.

The event included an overview of market conditions presented by Ilan Paz (CEO, Barclays Israel); an interview conducted by our colleague Josh Kaufman (Co-Chair, Capital Markets and Public Companies Advisory Practice and Latin America Practice Group Leader for Capital Markets, New York and Miami) with Asaf Homosanny (Senior Managing Director – EMEA, Nasdaq); and a panel discussion co-moderated by Josh and Ari Fried (Partner, Gornitzky GNY) on the US IPO process.

Panel participants included David Brooks (Managing Director, Investment Banking, Citigroup Israel), Guy Cohen (Managing Director, Head of Israeli Investment Banking, Oppenheimer), Alain Dobkin (Managing Director and Israel Country Head, Stifel Financial Corp.), and Ilan Paz. It was an informative and practical session, as well as a wonderful opportunity for networking. In addition, during Josh’s two-day trip, he met with 11 clients and Israeli law firms, and we shared an informal dinner with our colleagues at Gornitzky ahead of the event.

 

Upcoming events

• DLA Piper Charity Basketball Tournament to benefit Shalva: September 22
• Dinner for senior management of Israeli law firms with Rick Chesley (Global Managing Partner and Co-US Managing Partner, Chicago and New York): September 23
• General Counsel Retreat: Q4 2024

 

In the community

On April 11, our colleagues Brian Benjet and Katie Hausfeld – in Israel for the firm’s compliance workshop – joined Yehudah Gordon to volunteer at the Meir Panim soup kitchen in Jerusalem during lunch hours. Meir Panim is an organization that feeds the hungry, supports teens at risk, and uplifts Holocaust survivors.

They also toured the national headquarters of United Hatzalah of Israel, where they learned about the life-saving operation and witnessed first-hand the diversity and friendship of the volunteers, who both come from across all of Israel’s population – Jewish, Muslim, Christian, and Druze – and serve the entirety of Israel’s population. Naomi Maryles joined them for the last part of the day – a culinary and historical tour of the Machane Yehuda Market, led by our colleague Debbie Kandel.

On April 17, we volunteered at Pantry Packers by Colel Chabad, which provides nutritional support to Israel’s neediest families, as part of our donation to the organization for Passover. Over the course of an hour, we packaged 150 bags of corn flour and 187 bags of barley, which were distributed to individuals and families across Jerusalem and its environs.

In commemoration of Yom HaZikaron/Memorial Day on May 13 and in celebration of Yom Ha’Atzmaut/Independence Day on May 14, we supported a number of initiatives.

We donated to The Koby Mandell Foundation, which distributed notes along with Dam HaMaccabim (Red Everlasting) – the official Israeli memorial flower – for Yom HaZikaron to each of the 1,000+ bereaved families they support.

We also partnered with Smiles for the Kids to co-sponsor a Yom Ha’Atzmaut event for soldiers from a unit that suffered losses and their families.

Finally, we donated to Candy Corner Israel for their Caring for the Caregivers project, which recognized the care workers at Sheba Tel Hashomer Hospital for their tireless efforts to rehabilitate IDF soldiers. Each of the 160 staff members, including doctors, nurses, physical therapists, occupational therapists, psychologists, and social workers, received a mixed platter of nuts and candy.

We once again co-sponsored Standup in Solidarity, a Comedy for Koby show that took place across Israel from May 27–June 2 in support of The Koby Mandell Foundation. As the war continues, an increasing number of bereaved families are benefitting from the foundation’s programs, which include camps for children, healing retreats, support groups, and grief counseling.

On June 9, we hosted a pre-Shavuot get-together at our office for friends and colleagues in the building. We enjoyed a variety of cheesecakes from a small business and wine from wineries in the north and south of the country that have been impacted by the war.

Together, we shared good wishes, celebrated the previous day’s rescue of four hostages, and made a l’chaim to friendship, unity, peace, and the return of the rest of our hostages. We also distributed copies of the new Shavuot of Longing cookbook, a special collection that includes favorite recipes of 75 Israeli hostages and shares their personal stories.

On June 25, we hosted a summer kick-off party with nonprofit Simcha Layeled for children at Assaf Harofeh/Shamir Medical Center. The children enjoyed music, popcorn and cotton candy, arts and crafts, flower crowns, temporary tattoos, and playing with virtual reality sets. The party aimed to lift the spirits of the patients, who were unable to celebrate the end of the school year and beginning of summer vacation alongside their peers. As always, we loved partnering with Simcha Layeled, an organization dedicated to improving the quality of life for disabled and seriously ill children in hospitals and rehab centers across Israel.

Recent press

• “AI compliance in the US: Israeli tech’s nightmare,” Globes, April 24, 2024
• “Outside of the protocol,” Y Net, April 29, 2024
• “A new law in Canada approves ignoring the boss after work. Could this happen in Israel?” Globes, April 30, 2024
• “Will Israel ever give employees right to disconnect?" Globes, May 2, 2024
• “Aliyah in Action: Jeremy Lustman on Worthwhile Risks and Shifting Your Career to Israel,” Robus, May 26, 2024
• “The lounge: the ‘light and peace’ event was held with the theme of healing through art,” Maariv, June 17, 2024
• “Nearly half of business AI projects abandoned midway, study finds,” Jerusalem Post, June 23, 2024