Israel Group News - July 2026

Welcome to the July 2026 issue of our global newsletter, Israel Group News, dedicated to keeping you informed on the latest developments, emerging trends, hot topics, and DLA Piper activities that focus on bringing the dynamic and innovative Israeli ecosystem directly to your doorstep.

During the second quarter of 2026, we provided a wide range of legal services to Israeli companies, investors, and entrepreneurs, as well as to international businesses exploring opportunities within Israel. We view ourselves as an extension of the clients we serve; we aim to work with them for the long term, whether their needs involve guidance on day-to-day inquiries, focused 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. To view a video about our charitable work in the community, click here.

Please contact us if you have any questions or if we may be helpful in any manner. For new client requests, please send an email to dla-israel-attorneys@us.dlapiper.com.

Legally Israel 100 – IsraelDesks League Tables rankings

DLA Piper has been recognized across all 13 categories in the Legally Israel 100 – IsraelDesks League Tables 2026, one of just two firms to do so.

The firm ranked No. 1 in Banking & Finance and Private Client & Tax, and No. 2 in M&A Volume, Litigation, Hi-Tech, Employment, and Energy & Infrastructure. DLA Piper also received Elite Firm designation in the second-highest number of categories overall.

Managing Partner of DLA Piper’s Israel Group Jeremy Lustman (New York; Washington, DC; and Tel Aviv) was also recognized with a Band 1 ranking.

The Isaac Accords: Argentina’s new strategic framework with Israel

Israel and Argentina recently launched the Isaac Accords, establishing a new diplomatic and strategic framework that may shape regional engagement across Latin America. Our alert summarizes key developments and considerations for organizations operating in the region.

Global employment issues in M&A transactions and post-acquisition integrations

Deal activity involving Israeli companies has remained strong in 2026. As cross-border mergers and acquisitions (M&A) and integrations become more common, global employment issues are increasingly important to transaction planning and execution. Whether a multinational company acquires an Israeli startup or an Israeli company acquires operations abroad, employment law considerations can affect deal value and often involve complex, jurisdiction-specific requirements.

Our two-part series, “Global employment issues in M&A transactions and post-acquisition integrations,” examines key global employment issues that may arise during M&A transactions involving Israeli companies.

The first article focuses on employment considerations at the transaction stage, including employment due diligence, deal structuring and employee transfer mechanics, works council and union obligations, and addressing employment issues in transaction documentation.

The second article addresses employment issues that could arise during the post-acquisition integration (PAI) process.

Recent legal insights from DLA Piper

• In patent litigation, the obviousness inquiry often turns on what a hypothetical skilled artisan could reasonably have combined at the time of the invention. Artificial intelligence (AI) has significantly transformed that artisan’s capabilities to synthesize vast bodies of literature, spot correlations across disciplines, and generate potential solutions to defined technical problems – tasks that once required years of specialized experience and significant creative effort. As a result, even users with minimal training can obtain plausible solutions in minutes. These developments have significant implications for patent law. In this article, we discuss the role of AI in the person of ordinary skill in the art’s combinatory power, the doctrinal guardrails that constrain AI-driven obviousness challenges, and a notable appellate court decision that may shape AI’s role in the obviousness debate.
  
  
• The Silicon Valley principle of “move fast and break things” has influenced generations of founders. However, there is a distinction between moving quickly with intention and moving forward without establishing key foundational elements. While some founders may prioritize product development or fundraising before addressing core legal considerations, decisions about company structure, ownership, and key agreements are not merely administrative matters. Rather, they provide the foundation on which everything else is built. Addressing these issues early can help mitigate future legal risks. Read more about how to establish a sound legal foundation at the outset.
  
  
• On June 24, 2026, the European Commission published a package of two companion proposals that, if adopted, would materially simplify and recalibrate the European Union direct tax framework. For multinational businesses and funds, the significance of the package lies not only in its simplification aim, but also in its reach; the proposals would affect several commercially relevant EU tax directives at once. The package contemplates a reshaping of key parts of the EU direct tax rulebook. Learn about the key areas of reform here.
  
  
• Two recent publications provide practical considerations for those negotiating technology contracts in the financial services sector within the EU. This alert discusses why the first annual report from the European Supervisory Authorities on information and communications technology incidents under the Digital Operational Resilience Act, alongside new findings from the Basel Committee, may give pause to those responsible for technology transactions, cyber incidents, operational resilience, regulatory engagement, and corporate governance – in the financial services sector and beyond. Meanwhile, in an op-ed for the Future Investment Initiative Institute, DLA Piper’s Global Head of Transactions John J. Gilluly III (Austin) and Global Co-Lead of AI and Data Analytics Danny Tobey, MD, JD (Dallas) examine ways the EU AI Act is influencing global AI development. The piece spotlights regulatory complexity and uncertainty, as well as what’s at stake for innovation and cross-border deployment.
  
  
• The New York State Legislature has passed the Responsible Data Center Development Act (S10642/A11560), imposing a one-year moratorium on state permits for new large data centers with peak demand of 20 megawatts or more. The bill passed both the Senate and the Assembly on June 4, 2026, and, if signed by Governor Kathy Hochul, would make New York the first state to enact a statewide data center moratorium. The bill reflects a broader national trend as policymakers reassess data center development amid concerns over energy costs, water use, grid strain, and community impacts. Our alert presents key provisions of the act and takeaways for companies.

Recent matters

Below are recent Israel-related transactions in which DLA Piper was involved. The firm advised:

• Motorola Solutions, Inc., a safety and security technology company, on its USD1.5 billion acquisition of Israeli company DFend Solutions, a company specializing in counter drone and airspace security technology.
  
  
• Oppenheimer & Co. Inc., a US investment bank and financial services firm, as financial advisor to Gilat Satellite Networks Ltd., an Israeli provider of satellite networking technology, on its acquisition of the majority of the Satellite & Space Communications segment of Comtech Telecommunications Corporation, a provider of satellite ground infrastructure and communications solutions.
  
  
• Quantum Machines, an Israeli quantum computing infrastructure company, on its acquisition of PCB Engineering, a Hungarian hardware engineering company. This is Quantum Machines’ second European acquisition in six weeks, strengthening its global footprint as the company accelerates development of quantum control systems for next-generation quantum computers.

Global activity

In the second quarter of 2026, DLA Piper commenced projects for 62 Israeli companies in the following 43 jurisdictions: Argentina, Australia, Austria, Belgium, Bermuda, Brazil, British Virgin Islands, Canada, China, Colombia, Czech Republic, Denmark, the European Union, France, Georgia, Germany, Hong Kong, Hungary, India, Ireland, Italy, Japan, Mexico, Netherlands, Nigeria, Norway, Panama, Poland, Portugal, Romania, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Tanzania, Thailand, the United Arab Emirates, the United Kingdom, the United States, and Uruguay.

Below are recent representative matters in which the firm assisted Israeli companies around the world:

• Commercial issues in Germany, Poland, Portugal, Spain, Switzerland, Thailand, the UK, and the US
  
  
• Corporate and securities issues in Australia, Georgia, Germany, Japan, Mexico, Romania, Saudi Arabia, Singapore, Sweden, Tanzania, the UK, and the US
  
  
• Employment, employee benefits, and immigration guidance in Australia, Austria, Belgium, Brazil, Canada, China, Colombia, Czech Republic, Denmark, France, Germany, Hong Kong, Hungary, India, Ireland, Italy, Japan, Mexico, Netherlands, Poland, Portugal, Romania, Singapore, South Korea, Spain, Sweden, Switzerland, Thailand, the UK, and the US
  
  
• Litigation and dispute guidance in Canada, France, Nigeria, Spain, the UK, and the US
  
  
• M&A, finance, and investment guidance in Germany, Italy, Norway, Romania, South Africa, Spain, the UK, and the US
  
  
• Privacy and other product regulatory guidance in Australia, Canada, China, the EU, France, Germany, Hong Kong, Portugal, Spain, Switzerland, the UK, and the US
  
  
• Real estate guidance in the UK and the US
  
  
• Regulatory issues in Argentina, Australia, Bermuda, Brazil, British Virgin Islands, Canada, China, the EU, Germany, Italy, Japan, Mexico, Panama, Poland, Portugal, Saudi Arabia, Singapore, Spain, Switzerland, Thailand, the UAE, the UK, Uruguay, and the US
  
  
• Tax guidance in Germany, Mexico, Portugal, the UK, and the US

Colleague in the spotlight

Daniel Turinsky

Partner, New York, Short Hills

You have spent more than 20 years advising employers on US employment law. What are the most common employment-related challenges you see Israeli companies face when entering the US market?

A common challenge is underestimating how fragmented US employment law is. Israeli companies are often surprised to learn that in the US, employment law is governed by a patchwork of federal, state, and even city or county laws that can vary significantly depending on where an employee is located. A company hiring its first employee in California, for example, faces a different compliance landscape than one hiring employees in Texas or New York. Israeli founders frequently assume that a single employee handbook or offer letter template will work nationwide, but that is often not the case.

A second recurring issue is the concept of at-will employment. Israeli executives are sometimes surprised that US employees can, in most states, be terminated without cause. However, “at-will” doesn’t mean risk-free – companies are still expected to navigate discrimination, retaliation, and wage-and-hour laws, and many face risk by assuming “at-will” status is a blanket shield against liability.

Finally, I frequently see uncertainty around worker classification – both employee versus independent contractor and exempt versus non-exempt for overtime purposes. Getting this wrong can potentially lead to significant back-pay liability, penalties, and even personal liability for company officers in some states.

Hiring practices often differ across countries. What are the most important considerations for Israeli companies recruiting their first employees in the US?

The first decision is entity structure – whether to hire through a US subsidiary, use a professional employer organization or employer of record, or engage the individual as an independent contractor. Each option carries different tax, liability, and compliance consequences, and the right answer often depends on how many employees the company expects to hire and in which states.

Second, Israeli companies are encouraged to think carefully about where their employees will actually work, since state law generally follows the employee’s location. A remote hire in Colorado, for example, triggers different wage, leave, and pay transparency obligations than one in Florida.

Third, offer letters, employment agreements, and employee handbooks need to be drafted for the US market rather than adapted from Israeli templates. Provisions on at-will employment, restrictive covenants, arbitration, and equity compensation all require US-specific drafting. Israeli companies also need to build out compliant onboarding processes, including Form I-9 verification, state new-hire reporting, and proper wage notices, from day one.

Finally, because Israeli companies often want to offer equity compensation to attract US talent, they are encouraged to plan early for how their existing equity plan translates to the US tax and securities framework.

You’ve handled discrimination, harassment, and retaliation claims throughout your career. What proactive steps can employers take to foster a positive workplace culture while reducing legal risk?

The most effective tool is a clear, well-communicated set of policies, distributed through an employee handbook that addresses discrimination, harassment, and retaliation and provides multiple channels for employees to raise concerns. It’s important for employees to know how to report an issue and trust that they can do so without fear of retaliation.

Training is equally important, and not just a one-time onboarding session. Regular training for managers, in particular, may be helpful because supervisors are usually the first point of contact for complaints and their response (or failure to respond appropriately) often determines whether a workplace issue becomes a lawsuit. Some states, including California and New York, mandate periodic harassment prevention training; so this isn’t just best practice, it’s often a legal requirement.

Beyond policies and training, clients are encouraged to build a culture where complaints are investigated promptly and consistently. Inconsistent enforcement, or the perception that certain employees are untouchable, is one of the fastest ways to generate both morale problems and legal claims.

Finally, documentation matters. Consistent, contemporaneous documentation of performance issues, investigations, and disciplinary decisions is often what separate a defensible termination from a costly claim.

Non-compete agreements and restrictive covenants continue to evolve across the US. How can Israeli companies protect their intellectual property and customer relationships while staying compliant with changing laws?

This is an area where companies are encouraged to stay current, because the law is shifting quickly and unevenly across states. Some states, like California, generally prohibit employee non-compete agreements outright, while others have moved to restrict them for lower-wage workers or require specific procedural steps such as advance notice or consideration. Israeli companies coming from a jurisdiction where non-competes are more broadly enforceable are encouraged to be cognizant of the significant variations in legal requirements across different states.

Given that landscape, clients are generally advised to diversify their protections rather than rely solely on non-compete agreements. Well-drafted confidentiality and trade secret protection agreements, invention assignment agreements, and non-solicitation provisions covering customers and employees are enforceable in far more states than traditional non-competes and often provide the practical protection a company actually needs. Companies are also encouraged to make sure their confidential information is properly identified and protected through reasonable security measures; that documentation becomes central to litigation over trade secret misappropriation, if it ever arises.

Companies are also encouraged to tailor these agreements by state and revisit them periodically, since legislative activity in this area has been especially active over the past few years at both the state level and, at various points, the federal level. A one-size-fits-all restrictive covenant template is often insufficient.

If you could give one piece of employment-law advice to every Israeli founder or executive expanding into the US, what would it be and why?

Israeli organizations expanding into the US may wish to build their US employment law infrastructure before they need it, rather than after a problem arises. In practice, that means engaging US employment counsel early, before the first offer letter goes out, to make sure the entity structure, employment agreements, handbook, and compliance processes are established correctly from the start.

What do you enjoy most about working with Israeli companies, and what qualities have you found distinguish Israeli entrepreneurs and business leaders in the US market?

What I enjoy most is the directness and pace. Israeli founders and executives tend to ask sharp, practical questions and want straightforward answers, which makes for an efficient and genuinely collaborative working relationship. They’re also remarkably adaptable. Many of the Israeli leaders I’ve worked with come from a business culture that rewards resourcefulness and quick problem-solving, and I’ve seen that translate well into how they approach US expansion. In my experience, once they understand the rules of the road, they move quickly and decisively to build compliant, scalable operations. It’s rewarding to help guide that growth from the ground up.

DLA Piper Israel Group updates

On April 27–28, 2026, Jeremy Lustman attended Israel Tech Week in Miami, a cross-border conference connecting Israel’s tech ecosystems with Miami’s global capital. Miami is one of the fastest-growing technology and capital hubs in the US and a strategic gateway connecting North America, Latin America, and global markets. The event included a mix of entrepreneurs, investors, bankers, and others who are tied to the growing Israeli ecosystem in the city.

On June 22–23, 2026, Jeremy Lustman and Managing Director Naomi Maryles (New York and Tel Aviv) attended the Attorneys Conference organized by the Advocacy Center of the Orthodox Union (OU) in Washington, DC. The conference featured discussions covering a range of topics affecting the Jewish community in the US, including antisemitism, terrorism funding, First Amendment protections, workplace harassment, and more. DLA Piper was a co-sponsor of the conference.

On June 30, 2026, the DLA Piper Tel Aviv office hosted an off-site day of learning and team building at Sheraton Grand Tel Aviv. We kicked off the day with a game that explored how we listen to each other as a group. We then participated in a workshop led by business psychologist Andi Saitowitz that focused on increasing self-awareness, revealing hidden potential, and leveraging key qualities to enhance daily performance, communication, and potential as leaders and team players.

Finally, we welcomed our summer intern Nate Teitelbaum (TAMID Group), a rising junior at University of California, Berkeley. Nate’s summer has included marketing projects, opportunities to meet with clients and colleagues at Israeli law firms, team building activities, and more.

Professional and client events

On April 15, 2026, we hosted a Professional Networking Series lunch at the DLA Piper Tel Aviv office in conjunction with OU Israel. Rabbi Dr. Tzvi Hersh Weinreb, Executive Vice President Emeritus, Orthodox Union, shared insights on the timely topic, “Connecting Memory to the Current Reality.” The discussion touched upon major events in Jewish history and how time plays a role in citizens’ obligations to respond.

On May 18, 2026, DLA Piper co-hosted a webinar with the Association of Corporate Counsel (ACC) Israel on the topic of managing global workplace investigations. The panel of DLA Piper leaders discussed the complexities of handling cross-border internal inquiries in today’s regulatory environment, including risks and strategic factors, necessary steps, investigation processes, and potential outcomes. Panelists included Senior Partner and Global Co-Lead of Employment Pilar Menor (Madrid); Partner Dr Jens Kirchner (Cologne and Frankfurt); Partner Orla O’Leary (Dublin); and Partner George Nicholson (Manchester).

On May 20, 2026, we hosted the third Legacy and Leadership dinner with TAMID Group, bringing together alumni based in Israel. TAMID connects college students worldwide with Israeli businesses through campus activities and a competitive summer internship, bringing more than 125 students to Israel each year. TAMID interns have supported the DLA Piper Tel Aviv office for several years, and Jeremy Lustman sits on its Board. The dinner welcomed more than 20 TAMID alumni from across finance, technology, and other industries for networking and conversation. Lia Cromwell, Partner at UpWest, a Palo Alto and Tel Aviv-based seed fund, spoke about her TAMID experience and her professional journey since graduating from university.

On June 15, 2026, we hosted our next Professional Networking Series lunch, featuring Rabbi Eitiel Goldwicht, Founder and President of VLU group. VLU Group is a leadership initiative that integrates modern professional tools with Jewish knowledge to support the development of Israeli professionals. Rabbi Goldwicht shared insights on how perspective shapes decision-making and drives purposeful leadership.

On June 16, 2026, DLA Piper Partner Vinita Arora (London) and Legal Director Jan Colhoun (London) led a webinar for our Israeli clients on the significant changes to UK employment law taking effect in January 2027. Vinita and Jan outlined key reforms, including updates to unfair dismissal rules, and discussed how these changes are shaping workforce decisions, particularly for senior executives and high earners. The session also addressed how organizations can prepare for the evolving legal landscape, including practical steps to mitigate risk and strengthen compliance.

On June 17, 2026, we sponsored and hosted a workshop for TAMID Group Fellows interning in Tel Aviv this summer. 25 interns joined our team to hear from Ben Jaffe (Senior NetSuite Consultant and Deloitte/TAMID alum). Ben spoke about his time with TAMID, shared how he transferred his skills from the US to the Israeli business world, and answered questions from the interns about adjusting to living and working in Israel.

Upcoming events:

• DLA Piper Charity Basketball Tournament: September 9, 2026
• Global Employment Event with Herzog and Association of Corporate Counsel (ACC) Israel: October 13, 2026

Giving back to the community

Engaging in the community is one of the guiding principles of the DLA Piper Israel practice. As part of this commitment, during the second quarter of 2026, we participated in the following sponsorships and community activities:

• On April 17, 2026, we sponsored several teams at the Jerusalem Marathon. Teams represented the following organizations: Kav L’Noar, a mental health organization that supports youth and families at risk; the Koby Mandell Foundation, which helps individuals and families navigate bereavement; Beit Binyamin, a retreat center that offers respite, relaxation, and recovery to combat soldiers and bereaved and displaced families; and Yachad Israel, which aims to enhance the life opportunities of individuals with disabilities of all ages, ensuring their participation in the full spectrum of Jewish life.
  
  
• On April 22, 2026, in celebration of Yom Ha’Atzmaut, Israel Independence Day, we sponsored lunch for a group of United Hatzalah of Israel volunteers serving in the area near our Tel Aviv office. United Hatzalah is Israel’s largest community-based, free, volunteer emergency medical services organization.
  
  
• On April 24, 2026, we co-sponsored a team running in support of Koach Eitan at the Ashkelon Marathon, which included Jeremy Lustman, who ran the 10K race. Koach Eitan promotes awareness of brain injury, stroke, and aphasia and provides support to individuals and families affected by these conditions and related challenges worldwide.
  
  
• On May 19, 2026, DLA Piper hosted a pre-Shavuot celebration at the Tel Aviv office focused on community, networking, and charitable giving. The event brought together spouses of miluim (military reservists) from different communities to connect with one another and join the DLA Piper team for holiday-inspired snacks and a flower-arranging workshop. Guests also took home extra flower bouquets to share with other miluim families in their communities for the holiday.
  
  
• We co-sponsored the 10th annual Geerz charity bike ride in Northern Israel, which took place May 25–26, 2026. Geerz is a nonprofit therapeutic program that uses mountain biking to help at-risk youth build life skills through physical activity, teamwork, and problem-solving. Jeremy Lustman, a longtime participant in the Geerz charity ride, joined the team for dinner along the route.
  
  
• We co-sponsored the Koby Mandell Foundation’s latest Comedy for Koby tour, which took place in cities across Israel from May 27–June 3, 2026.
  
  
• On June 19, 2026, our team volunteered at the logistics center of Leket Israel, the national food bank and food rescue organization. Leket collects surplus produce and meals from farms and restaurants and redistributes them to 470,000 individuals weekly. Our team sorted beets and carrots and also helped pack 14.5 tons of produce within a three-hour window as part of Leket’s nutrition education program for at-risk youth. We are pleased to announce that Leket is the beneficiary of the 2026 DLA Piper Charity Basketball Tournament taking place on September 9, 2026.