29 January 2025 • 21 minute read

Israel Group News - January 2025

Welcome to the January 2025 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.

Through the immense challenges of this past year, we’ve witnessed the remarkable resilience of the Israeli people, and of the Israeli market. According to an end-of-the-year Calcalist report, “Israeli high-tech defied expectations, and 2024 [shaped] up to be one of its most successful years…Israeli high-tech companies raised $9.58 billion across 443 fundraising rounds. This [marked] a 38% increase in capital raised and a 13% increase in the number of rounds compared to 2023, during which companies raised $6.9 billion.” What an astounding achievement.

During Q4 2024, we continued to provide a wide range of legal services to Israeli companies, investors, and entrepreneurs, as well as to businesses across the world seeking opportunities within Israel. We view ourselves as an extension of the businesses we serve; 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 trusted advisor practice, the types of day-to-day guidance we provide, and our representative client list, click here.

In addition, to view our Rosh Hashana (Jewish New Year) 2024 video with messages of support from colleagues and clients around the world, click here. To view a video about our charitable work in the community, click here. Please 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.

2024 DLA Piper Basketball Tournament video

We are excited to share with you a highlight video of our 2024 DLA Piper Charity Basketball Tournament, which took place on September 22, 2024 in support of Shalva’s Rising in Rank program. Shalva is the award-winning Israel Association for the Care and Inclusion of Persons with Disabilities, and this program enables young adults with disabilities to serve in the Israel Defense Forces (IDF).

Eight top Israeli law firms participated in what has become a flagship event in the industry: Arnon, Tadmor-Levy; Epstein Rosenblum Maoz (ERM); Furth, Wilensky, Mizrachi, Knaani (FWMK) Law Offices; Gornitzky GNY; Herzog Fox & Neeman; Meitar Law Offices; Naschitz Brandes Amir Co.; and S. Horowitz. As you will see in the video, it was an evening of solidarity and teamwork for a very special cause.

Latest on the Corporate Transparency Act

Hot off the presses: On January 23, 2025, the US Supreme Court granted the federal government a stay of the preliminary injunction foreclosing enforcement of the Corporate Transparency Act (CTA) in McHenry v. Texas Top Cop Shop, Inc. (originally Garland v. Texas Top Cop Shop, Inc., now changed to reflect the new administration).

Prior to the Supreme Court’s order, the CTA, which mandates that certain entities disclose their beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN), had been subject to a nationwide preliminary injunction following a district court ruling in December 2024 that questioned the CTA’s constitutionality. The government’s appeal of the district court’s ruling is now before the US Court of Appeals for the Fifth Circuit.

While the stay has been granted in connection with this injunction, a separate nationwide order staying the effective date of the CTA’s reporting rules issued on January 7, 2025 by a different federal judge in Texas (Smith v. US Department of the Treasury) still remains in place. This means that reporting companies are not currently required to file beneficial ownership information with FinCEN despite the Supreme Court’s recent action. Read our alert for more.

Breaking legal insights from DLA Piper

California’s AB 3234, which requires California employers to publicly disclose child labor findings and certain other information regarding voluntary labor compliance audits, went into effect on January 1, 2025. The statute provides no lookback period for in-scope audits, nor does it specify whether it applies retrospectively or prospectively – and, as such, there is a presumption against its retroactive application. This alert looks at key aspects of the statute and outlines next steps for businesses.
Today’s ever-shifting business environment means that consumers, businesses, employers, and employees all expect to transact digitally. To remain efficient and competitive, companies must digitally transform their businesses. Successful transformation and maintenance require careful planning and up-to-date knowledge to ensure smooth integration with existing business technology, positive customer experience, and ongoing regulatory compliance. This newsletter includes legal insights and brief summaries of recently enacted US federal and state laws, federal and state regulatory activities, fresh judicial precedent, and other important news to keep you up to date in the ever-evolving electronic environment.
The European Union (EU) this year finalized significant revisions to its rules countering money laundering and terrorist financing (the AML Package). In addition to strengthening the existing regulatory framework, the AML Package also establishes a new European AML supervisory authority, the Frankfurt-based Anti Money Laundering Agency, which will commence its operations on July 1, 2025. In this article, we briefly discuss the AML Package, its key implications, and how entities subject to the rules can best prepare.
The new year ushered in significant reforms to the UK's merger control thresholds and a new digital regulation regime, when important sections of the Digital Markets, Competition and Consumers Act 2024 (DMCC) entered into force on January 1, 2025. The DMCC's provisions concerning consumer protection regulation will come into effect later in the year. Learn more about the changes introduced by the DMCC.
Whistleblowers play a crucial role in accountability within organizations by reporting illegal or unethical activities. Recognizing the importance of protecting these individuals, Poland recently enacted the Act on the Protection of Whistleblowers, which came into effect on September 25, 2024. This article explores the key aspects of whistleblower protection in Poland and provides practical guidelines for companies operating in the Polish market.

Global activity

In the fourth quarter of 2024, we commenced projects for 86 Israeli companies in the following 46 jurisdictions: Argentina, Australia, Austria, Brazil, China, Colombia, Czech Republic, Denmark, Estonia, the EU, Finland, France, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Ireland, Italy, Japan, Kazakhstan, Kenya, Kuwait, Luxembourg, Mexico, Myanmar, Nepal, Netherlands, Nigeria, Paraguay, Peru, Poland, Portugal, Romania, Saudi Arabia, Singapore, South Africa, Spain, Sweden, Switzerland, Thailand, the UAE, the UK, Ukraine, and the US.

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

Commercial issues in Brazil, Estonia, France, Japan, Kazakhstan, Mexico, Paraguay, Poland, Saudi Arabia, Singapore, Spain, Sweden, and the US
Corporate and securities issues in Brazil, Columbia, Finland, Germany, India, Italy, Japan, Kenya, Kuwait, Luxembourg, Portugal, Spain, Sweden, the UAE, the UK, and the US
Employment and employee benefits guidance in Argentina, Australia, Belgium, Brazil, China, Columbia, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, Nepal, Netherlands, Poland, Singapore, Spain, Switzerland, the UK, Ukraine, and the US
Litigation and dispute guidance in Australia, Austria, and the US
Mergers and acquisitions (M&A) and investment guidance in Germany, the UK, and the US
Privacy and other product regulatory guidance in Australia, China, the EU, France, India, Indonesia, Japan, Mexico, Peru, Philippines, Saudi Arabia, Singapore, South Africa, the UK, and the US
Real estate guidance in Brazil, Germany, Kuwait, Portugal, the UK, and the US
Regulatory issues in Argentina, China, Estonia, the EU, Germany, Indonesia, Japan, Mexico, Myanmar, Nigeria, Paraguay, Poland, Singapore, Spain, Sweden, Thailand, the UAE, and the US
Tax guidance in Italy and the US

Colleague in the spotlight

Dr. Nico Brunotte
Partner
Hamburg, Germany

Please tell us about your area of practice.

My practice focuses on providing comprehensive legal support for digital business models, including e-commerce, online marketing, and the integration of artificial intelligence (AI) into business processes. I also bring significant experience in cross-border mergers and acquisitions, as well as joint ventures, with a strong emphasis on companies operating in the tech and digital sectors.

Before becoming a lawyer, I spent more than 15 years as a freelance programmer. This technical background allows me to support companies in leveraging technology to drive innovative business models, particularly in the digital space.

The combination of technical know-how and deep legal experience enables me to bridge the gap between technology and law, ensuring my clients receive practical, forward-thinking solutions that align with their business goals in the digital landscape.

What piece of advice would you give to Israeli companies looking to do business in Germany?

Based on my experience, having legal advisors in Germany with a deep understanding of both the German market and the expectations of German customers is key. Equally important, however, is the ability to grasp the needs, business culture, and strategic priorities of Israeli companies doing business in Germany. This dual perspective is invaluable for bridging potential communication gaps, navigating cultural differences, and ensuring compliance with Germany’s rigorous legal and regulatory standards. Moreover, it enables tailored solutions that align seamlessly with the goals of Israeli businesses entering or expanding in the German market.

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

I often see myself as a translator of the German legal system for clients who are not based in Germany and are entering this market. I guide clients through the complexities of German law, explaining its strict requirements – including in the business-to-business sector – and collaborating to develop creative legal solutions that meet their needs.

When German customers insist on applying German law to contracts with Israeli companies, this often requires clients to adopt a new mindset and accept certain commercial risks. Practices common in other legal systems frequently do not translate directly to Germany, either due to statutory prohibitions or because German customers are unwilling to accept them. This can present challenges, particularly for Israeli companies unfamiliar with these constraints.

Additionally, the perspective of German customers is currently shaped, to some extent, by the current conflict. It is important to provide these customers with reassurance that services will be delivered without interruption, which can be achieved through carefully designed service levels and contractual safeguards. Striking the right balance between compliance, risk management, and customer assurance is critical for success in this market.

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

Israel has always captivated me as a travel destination, with its vibrant culture, warm people, rich history, and, of course, incredible cuisine. At the start of 2020, my wife and I had planned a trip to Israel, including several days in Tel Aviv and Jerusalem. Unfortunately, the outbreak of the coronavirus brought the world to a standstill, and we had to cancel our plans.

We were disappointed to miss out on this experience and still feel a sense of loss over the trip that didn’t happen. However, we remain hopeful that we can fulfill this dream in the future – this time as a family of four with our two children. It’s a destination we’re eager to explore, and we’re confident it will be worth the wait.

DLA Piper Israel Group updates

On October 15, 2024, we co-sponsored an exclusive networking breakfast organized by the VLU Group for 80 Israeli senior business leaders and international guests visiting for the Sukkot holiday. The VLU Group is a social umbrella organization that aims to create communities of personal empowerment and social impact around a shared Jewish identity and wisdom.

The event, held at the Orient Hotel in Jerusalem, began with welcoming remarks by Rabbi Eitiel Goldwicht, Co-Founder and President of VLU, who spoke about the role of ethics and values in the marketplace. Next was a facilitated group discussion on how a commitment to Israel might affect investment decisions. The event concluded with a presentation by Professor David Passig of Bar-Ilan University on future cultural and economic trends in Israel, and an in-depth perspective on missile defense from Brigadier General Doron Gavish.

During the third week in November, Jeremy Lustman (Partner and Head of DLA Piper Israel Group) volunteered with Operation Ethiopia, a grassroots Israeli humanitarian organization, on a mission to improve eyesight for hundreds of impoverished men, women, and children in Ethiopia. The team of ophthalmologists and lay volunteers treated nearly 1,000 people through mobile eyecare clinics, restored sight to over 500 blind people with cataract surgery, donated canes to blind children, dispensed hundreds of pairs of eyeglasses and units of medication, screened for eye disease, and more.

On December 12, 2024, we co-sponsored a reception at the Friends of Zion Museum in Jerusalem thanking President of Paraguay Santiago Peña and the Paraguayan Delegation for their support of Israel, including the historic move of the Paraguayan Embassy to Jerusalem. During these tough times, we thank those who stand with Israel.

On January 1, 2025, we celebrated the end of a successful year and kicked off the new year with an evening lighting candles for the last night of Chanukah, followed by a toast and video viewing that encapsulated the year for our team. We then had dinner at ImerSion, an immersive dining experience in Tel Aviv. It was a wonderful night of camaraderie in honor of all we have accomplished together.

Professional and client events

On November 26, 2024, Jeremy Lustman participated in a fascinating panel discussion on the topic, “The Next Chapter: M&A in Israel.” The event, hosted by M&A Community, iDeals, and WTW, brought together leading professionals within Israel’s resilient M&A market to discuss trends, outlook for the future, and potential opportunities.

The panel, which also included Yoel Hakak (Partner, EY), Talya Gerstler (Partner, Meitar Law Offices), and Maayan Golan (Investment Banker, Rothschild & Co), tackled big topics shaping the M&A market in Israel, including: strategies that have helped Israeli companies stay resilient, and factors that are likely to shape the sector's future; how recent political events are shaping global perceptions of Israel; whether Israeli companies are strengthening their positions as acquirers and, if so, how this shift might impact the market’s future; and how the impact of the war compares when you consider tech versus non-tech transactions. The audience included companies, funds, investors, and deal advisors.

On November 27, 2024, we hosted an intimate Thanksgiving dinner for clients and friends to express our collective blessings and gratitude. Chef Tamar Amor at Tetto in Sarona Tel Aviv prepared an upscale classic American Thanksgiving dinner.

On December 15, 2024, we ran an exclusive training session for clients at the Sheraton Tel Aviv on the impact of recent and upcoming EU regulations – including the NIS 2 Directive, the Data Act, the Digital Operational Resilience Act (DORA), and the EU AI Act – in contractual negotiations. Led by Jonathan Rofé (Partner, Paris), the session focused on what Israeli companies need to anticipate and prepare for in light of these regulations.

On December 17, 2024, we hosted a webinar on the 2024 US presidential election and its impact on Israel's cross-border business landscape. Jeremy Lustman moderated a panel discussion with DLA Piper Partners Ignacio Sanchez (Washington, DC) and Steven Phillips (Chair, Government Affairs and Public Policy, Washington, DC), and Jennifer Gavito (Senior Advisor and Middle East Co-Lead, The Cohen Group).

The panel addressed a number of topics, including: what might be different during a second Trump Administration in regard to Israel; how the new Administration’s approach to economic policy might impact Israeli businesses, specifically in terms of trade and exports; what opportunities and challenges might arise for Israeli companies looking to expand their presence in the US market; and the Abraham Accords, Saudi Arabia, and Middle East geopolitics.

On January 6, 2025, we hosted an event at the DLA Piper New York office for more than 75 legal professionals looking to explore the possibility of transitioning their careers to Israel. The event included a networking breakfast followed by panel discussions with representatives from top Israeli law firms, foreign firms with an Israel practice, and in-house counsel from Israel-connected companies. Panelists focused on giving practical advice, expanding networks, and encouraging creativity.

A panel discussion about Israeli law firms was led by Chaim Friedland (Partner, Gornitzky & Co.) and included Itai Sarfaty (Partner, Herzog Fox & Neeman), Tomer Shani (Managing Director, MeitarNY Inc.), and Yoheved Novogroder-Shoshan (Partner, Arnon, Tadmor-Levy).

A panel discussion about working with in-house legal teams at Israel-related companies was led by Joseph Turitz (Senior Legal Advisor, BioCatch) and included Erin Abrams (Chief Legal Officer, Via), Scott Buell (General Counsel, Forter), and Avi Lauer (VP for Legal Affairs, Secretary, and General Counsel, Yeshiva University).

Participants also heard from three foreign law firms – DLA Piper, Honigman, and Greenberg Traurig – about their Israel practices. Finally, Natti Ginor (Head of Israel Investment Banking, Jefferies) shared insights on the resilience of the Israeli economy in 2024. Feedback from the event has been enormously positive and we are gratified by follow-up interest.

Upcoming events:

Tu B’Shvat Client Dinner: February 10, 2025
International Women’s Leadership Conference: March 6, 2025
US Litigation Event: Q1
Global M&A Event: Q1
State and Local Tax (SALT) Event: Q1
AI Event: Q2

Giving back to the community

Corporate social responsibility is one of the guiding principles of the DLA Piper Israel practice, and we are proud to have engaged in the following sponsorships and community activities:

We co-sponsored the Comedy for Koby Sukkot tour that ran from October 20-22, 2024 in support of The Koby Mandell Foundation. This comedy show, which takes place multiple times each year, supports a wonderful organization doing critical work to help families impacted by terror in Israel.

On October 29 and November 25, 2024, our team volunteered at a local farm that remains short-staffed due to the war. We picked lemons on the first day and then came back to build 500 boxes to package the lemons for shipment.

On November 11, 2024, we co-sponsored a barbecue for a unit of Yahalom (Special Ops, Combat Engineering) IDF soldiers on what turned out to be a brief break from Gaza. We thanked the men and women for their service and helped provide them with hot meals before they were unexpectedly called back to Gaza just an hour later.

On November 25, 2024, we once again co-sponsored the annual Ezer Mizion golf tournament in Caesarea. It was an opportunity to bring attention to the world’s largest Jewish bone marrow registry and highlight the charitable work the organization does for children with special needs, families of hospitalized patients, the elderly, and those facing mental health challenges. Jeremy Lustman brought along some friends of DLA Piper Israel Group for a day of sport and camaraderie.

On November 28, 2024, we again co-sponsored Thanksgiving dinner with The Lone Soldier Center in memory of Michael Levin and showed our appreciation for young men and women who have left their families and countries of origin to serve in the IDF. In an especially challenging year, the DLA Piper Israel team helped provide an evening of fun, unity, and indulgence for 200 soldiers who are protecting our country on so many fronts.

As we do every year, we chose eight charities to support corresponding to the eight nights of Chanukah, plus a ninth organization to represent the “shamash” – the extra candle that is used to light the eight candles of the menorah.

For the first night of Chanukah, we donated to Operation Ethiopia, a grassroots Israeli humanitarian aid organization that brings lifechanging eye care to thousands of people in Ethiopia each year, in support of their latest campaign (as noted above).
For the second night of Chanukah, we donated to and volunteered at United Hatzalah of Israel. United Hatzalah is the largest independent, nonprofit, volunteer, and free emergency services organization in Israel. As we have done several times previously, we spent a few hours at their logistics center packing first responder kits.
For the third night of Chanukah, we sponsored a party for kindergarten children and young adults at Shalva National Center. We participated in the light show with the children, made arts and crafts with the young adults, and danced a lot with both age groups.
For the fourth night of Chanukah, we donated to, and volunteered at, GIFT, an organization whose mission is to inspire and enable lifelong charitable giving in all its forms. Our team, along with some family members, made sandwiches and fruit salad at GIFT’s Jerusalem headquarters near Shuk Machane Yehudah. The food was then distributed to local homeless individuals.
For the fifth night of Chanukah, we donated gifts to a party that was held for evacuated families from the northern Israel town of Shlomi run by Smiles for the Kids. We handed out presents and sufganiyot (jelly donuts) to affected children. Smiles for the Kids – launched in response to October 7 – aims to bring joy to soldiers, their families, and displaced families across Israel.
For the sixth night of Chanukah, we co-sponsored a party along with Simcha Layeled for children at Shamir Medical Center (Assaf Harofeh). This organization is dedicated to improving the quality of life for disabled and seriously ill children in hospitals and rehab centers across Israel.
For the seventh night of Chanukah, we sponsored sufganiyot that were distributed during lunch at Meir Panim's Jerusalem soup kitchen. Meir Panim feeds the hungry, supports teens at risk, and uplifts Holocaust survivors.
For the eighth and final night of Chanukah, we donated to two organizations: Save a Child's Heart, an Israeli humanitarian organization that saves the lives of critically ill children suffering from heart disease in countries where access to pediatric heart care is limited or nonexistent, with gifts for children recovering from surgery; and Grilling For Israel, an organization that serves freshly prepared meals in order to boost IDF soldiers’ morale and aids displaced families, with co-sponsorship of a barbecue for soldiers.