28 April 2025 • 22 minute read

Israel Group News - April 2025

Welcome to the April 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.

The first quarter of 2025 was filled with substantive professional events and meaningful communal engagement. In addition, we provided 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 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.

Rankings

We are thrilled to have been recognized by Chambers and Partners (Global) as a Band 1 leading firm in Corporate/M&A: International Firms (Expertise Based Abroad) in Israel for the second year in a row. In addition, Jeremy Lustman (Partner and Head of DLA Piper Israel Group) has again been recognized as a Band 2 leading lawyer in Corporate/M&A: International Firms (Expertise Based Abroad) in Israel, one of only 16 lawyers ranked in this category.

We are also honored to be recognized by Legally Israel 100 - IsraelDesks League Tables in 12 out of their 13 categories, coming in at #1 for Employment, Banking and Finance, and Private Client and Tax, and #2 for M&A Volume, Intellectual Property, and Hi-Tech. We are also tied with one other firm for appearing in the most categories as an Elite firm. Jeremy Lustman is once again ranked as a Leading Lawyer (top ranking), one of only eight in the category.

DLA Piper’s US election topic hub

The results of the 2024 US election are significantly reshaping the business landscape.

DLA Piper is here to help you navigate shifting economic, political, and regulatory dynamics. From possible changes in trade and healthcare regulations to shifts in tax policy, we are prepared to guide you through these developments as they unfold.

Bookmark our US Election Topic Hub for timely insights, including client alerts, articles, podcasts, videos, and webinar invitations.

Breaking legal insights from DLA Piper

On April 5, 2025, imports to the US from all countries became subject to an additional 10-percent reciprocal tariff on top of any existing duties or tariffs. On April 9, 2025, President Donald Trump announced a 90-day pause on the increased reciprocal tariff rates, which took effect that morning, for all countries other than China. The pause maintains the 10-percent universal tariff but delays the country-specific increases. In the same announcement, President Trump increased the reciprocal tariffs on China to 125 percent, effective immediately. DLA Piper’s National Security and Global Trade team and Government Affairs and Public Policy team are closely monitoring the tariff landscape. The groups have advised businesses on how to strategize around the economic uncertainties that new and anticipated tariffs create. Read our alert to keep track of the changing landscape and find out how the tariffs may impact your business.

The proxy statement has become an integral component of a public company’s preparation for its annual meeting of shareholders. The rules and regulations under the Securities and Exchange Act of 1934 (Exchange Act), administered by the US Securities and Exchange Commission (SEC), require public companies to provide shareholders with a proxy statement that meets the requirements of Schedule 14A in order to solicit proxies to vote at annual meetings in connection with the election of directors. This article details new and existing disclosure requirements for proxy statements for the 2025 reporting season, and how public companies can prepare to meet them. It also discusses disclosure trends and considerations when drafting key sections of the proxy statement, and provides guidance on how companies can effectively incorporate them into their proxy statements.

On March 11, 2025, the European Commission adopted the VAT (value-added tax) in the Digital Age (ViDA) package. This initiative aims to modernize VAT systems across the EU, enhancing efficiency and compliance through digitalization. Read further for a summary of the key changes and their implementation timelines.

On March 21, 2025, the Financial Crimes Enforcement Network (FinCEN) issued an interim final rule (IFR) significantly revising the beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act (CTA). The IFR exempts domestic entities, certain foreign reporting companies, and US persons from filing BOI reports, and extends the deadlines for compliance for foreign reporting companies. Learn more about how this might apply to your business.

US federal agencies have been enforcing President Donald Trump’s DEI-related Executive Orders, with various federal and state government agencies mobilizing to carry out investigations. Our alert discusses the current enforcement landscape and offers a roadmap for companies.

The German Accessibility Act (BFSG) implements EU Directive 2019/882 of the European Parliament and Council – also known as the European Accessibility Act (EAA) – into German law. Focused on accessibility requirements for products and services, it is intended to increase inclusivity in society by assisting those with disabilities to participate in e-commerce, and deal with technical products and services. See our alert for information on the scope of application, obligations, and sanctions under the Act relating to Israeli companies who offer digital products or services to consumers in Germany.

The Government of Canada has updated its guidelines on the National Security Review of Investments under the Investment Canada Act, effective from February 6, 2025. These updates incorporate broader geopolitical considerations, such as economic security's integral role in national security. Notable changes include the explicit recognition of economic security risks, the adoption of the Sensitive Technology List identifying strategic technologies like AI and quantum computing, and enhanced criteria for national security review. These criteria include proximity to military assets, foreign government ties, and risks to data sovereignty. These revisions aim to address gaps in Canada's foreign investment regime, and align with international security frameworks, raising scrutiny for sensitive technology sectors and foreign government-linked investors. Read our alert to find out more.

Recent matters

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

Advised Woven Capital, Toyota Motor Corporation’s growth fund, on its lead role in a $191 million financing round in UVeye – an Israeli company that developed an AI-powered system that scans vehicles to detect defects and damages, identifies mechanical issues, and spots structural changes. Additionally advised Trinity Capital, an international alternative asset manager, on a $150 million debt financing, as part of the round.

Represented Riverwood Capital, a US-based private equity investment fund, in connection with its acquisition of Quicklizard, an Israeli publicly-listed (TASE) company that produces AI business productivity software.

Advised the management team of Innovid Corp., an Israeli independent connected TV (CTV) advertising delivery and measurement platform, in connection with the company’s ongoing proposed sale to US-based Mediaocean LLC, a provider of integrated media procurement technology to brands and agencies.

Advised Israel Corporation Ltd., Israel’s largest holding company, on the Brazilian aspects of its $71.9 million acquisition of a 27.5 percent stake in Prodalim Investments Ltd., an Israeli food and beverage company with extensive manufacturing operations, including nine factories and distribution centers worldwide.

Advised Fortissimo Capital, a leading Israeli private equity fund investing in technology and industrials, on the US aspects of its equity investment of $120 million into Stratasys Ltd., a leader in polymer 3D printing solutions.

Global activity

In the first quarter of 2025, we commenced projects for 75 Israeli companies in the following 40 jurisdictions: Australia, Austria, Belgium, Botswana, Brazil, Canada, China, Colombia, Denmark, Egypt, the EU, France, Germany, Hong Kong, India, Indonesia, Ireland, Italy, Japan, Luxembourg, Macedonia, Mexico, Netherlands, Nigeria, Poland, Portugal, Romania, Saudi Arabia, Serbia, Singapore, South Korea, Spain, Sweden, Switzerland, Tanzania, Thailand, Turkey, 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, Belgium, Brazil, China, France, Germany, Italy, Japan, Mexico, Poland, Singapore, Spain, the UAE, and the US
Corporate and securities issues in Germany, Italy, Luxembourg, Mexico, Portugal, Sweden, Tanzania, the UAE, the UK, and the US
Employment and employee benefits guidance in Australia, Austria, Brazil, China, Denmark, Egypt, France, Germany, Hong Kong, Indonesia, Ireland, Italy, Macedonia, Mexico, Netherlands, Poland, Portugal, Romania, Saudi Arabia, Singapore, Spain, Switzerland, Thailand, Turkey, the UAE, the UK, and the US
Litigation and dispute guidance in Australia, Canada, Germany, the UAE, the UK, and the US
M&A, finance, and investment guidance in Japan, Nigeria, Romania, Sweden, the UK, and the US
Privacy and other product regulatory guidance in Botswana, China, the EU, Germany, India, Macedonia, Mexico, Netherlands, Singapore, Spain, the UK, and the US
Real estate guidance in the UK and the US
Regulatory issues in Australia, Canada, China, Colombia, the EU, France, Germany, Ireland, Japan, Mexico, Netherlands, Poland, Singapore, Saudi Arabia, Serbia, South Korea, Spain, Sweden, Switzerland, Thailand, the UAE, the UK, and the US
Tax guidance in Italy, Portugal, Spain, and the US

Colleague in the spotlight

David Farkas
Of Counsel
Los Angeles, CA

Please tell us about your area of practice.

I am a business litigator with nearly 20 years of experience handling high-stakes commercial disputes. As a trial lawyer, I have led complex cases through all phases of litigation to verdict. My practice encompasses a broad range of commercial matters, including contract claims and various business torts.

A significant focus of my work is defending against consumer class actions, with particular emphasis on privacy litigation and compliance. As privacy claims have become increasingly prevalent among both the plaintiffs' bar and US regulators over the past decade, I help in-house legal teams and C-Suite executives navigate this complex and dynamic landscape. Working with our Tel Aviv office allows me to bridge jurisdictional gaps for businesses facing multi-dimensional legal challenges, particularly Israeli companies operating in or expanding to the US market.

What challenges do Israeli companies face when it comes to the litigation landscape in the US?

Israeli companies operating in the US market encounter several distinctive aspects of the American litigation environment that differ significantly from the Israeli legal system. While Israel has its own well-developed class action framework, the US class action landscape presents its own challenges in terms of scale, frequency, and potential exposure. The US plaintiff's bar is exceptionally well-organized and proactive, often addressing companies with innovative business models or those expanding into new markets. The potential damages in US class actions frequently reach levels that can threaten business viability, making them a critical risk factor.

The US discovery process represents another significant difference, as it tends to be extraordinarily broad, time-consuming, and expensive compared to Israeli proceedings. The scope of document production, depositions, and expert discovery can create substantial operational disruptions and legal costs that may not be factored into initial business planning.

The US jury system introduces elements of unpredictability in commercial litigation, which differ from the Israeli court system. This can affect both case strategy and settlement calculations, as jury verdicts sometimes result in unexpectedly large damages awards.

Finally, the federalized nature of US law means companies may need to navigate both federal regulations and a patchwork of state laws that vary considerably, particularly in areas like privacy, data security, and consumer protection. This creates complexity, even for sophisticated legal teams accustomed to a more centralized legal framework.

What advice would you give Israeli companies regarding risk mitigation?

For Israeli companies looking to mitigate legal risks in the US, I recommend a proactive, multi-layered approach. It may be trite, but the idiom “an ounce of prevention is worth a pound of cure” is apt.

First, companies may consider investing in comprehensive compliance programs tailored to their specific industry and the US regulatory landscape. Standard practices in Israel could trigger regulatory scrutiny in the US.

Second, companies may carefully craft contracts with explicit choice-of-law and forum selection clauses, arbitration provisions (where appropriate), and clear terms that account for differences in legal interpretation between jurisdictions.

Third, companies may consider developing a litigation readiness plan before issues arise. This includes document retention policies that balance Israeli privacy requirements with potential US discovery obligations, and identifying qualified US counsel who understand your business and industry.

Fourth, consider obtaining appropriate insurance coverage specifically designed for US operations and potential litigation exposure, including directors’ and officers’ liability insurance and cyber liability coverage.

Finally, companies are encouraged to foster cross-cultural legal awareness within the organization, such as training teams to recognize when communication styles or business practices might create unintended legal exposure in the US market.

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

Tel Aviv is at the top of my list to revisit. Despite growing up attending Yeshivah (Jewish school), I just recently took my first trip to Israel this year. Due to work obligations, I was only able to spend one day each in Tel Aviv and Jerusalem. I immediately fell in love with both cities, but the energy, warmth, and dynamic feel of Tel Aviv struck a major chord with me. There was something captivating about the blend of Mediterranean beach culture, an innovative tech scene, and rich cultural heritage all coexisting in one vibrant city. I am eager to return as soon as possible with my family to properly experience the city's neighborhoods, cuisine, and beaches. Of course, I also want to see and explore the rest of the country, but Tel Aviv left an impression that has me planning my return already.

DLA Piper Israel Group updates

We are thrilled to announce that Dana Brody Glass has joined our practice as a Director. Dana will be responsible for facilitating new client generation through intelligence gathering and networking, overseeing and managing ongoing client matters and projects, and generating new business opportunities for DLA Piper colleagues around the world.

Previously, Dana was a Senior Associate in the International Corporate and Securities Department at a major international law firm in Israel. Prior to that, she advised on international corporate and securities and commercial litigation at two major law firms.

In other exciting news, we have moved into our own DLA Piper Israel office for the first time since Jeremy Lustman started the practice over 15 years ago. Located in the Azrieli Triangle building in Tel Aviv, the office is spacious and beautiful, with views of the Mediterranean Ocean and the southern part of the city. We look forward to hosting our colleagues, clients, and friends in the years ahead.

Finally, we are pleased to share our 2024 Year in Review brochure and recap video. Despite the challenges of the ongoing conflict, the DLA Piper Israel team had a busy year with many new clients and significant projects, and we engaged with both the local Israeli ecosystem and the global DLA Piper firm in myriad ways.

Professional and client events

On January 19, 2025, we co-hosted a dinner with Israeli law firm Gornitzky GNY for senior legal executives from US law firms and major global corporations who were in Israel on a mission sponsored by Israel Tech Mission (ITM). The three-day trip included briefings on various political and economic issues by senior government officials and leaders of the Supreme Court; discussions with Israeli legal professionals; and visits to Hostage Square, the Nova Festival site, and kibbutzim impacted by the October 7 tragedy.

On February 10, 2025, we hosted a dinner for clients in honor of Tu B’Shvat, a Jewish holiday that celebrates the renewal of nature and the fruitfulness of the land of Israel. During dinner, our guests experienced a presentation and tasting session by Negave Estates LLC, the creator of a revolutionary agave spirit made in and inspired by the Negev desert.

On March 4, 2025, we co-hosted a webinar with the Association of Corporate Counsel (ACC) Israel, titled “US employment law trends and developments.” Four distinguished DLA Piper partners – Ben Gipson (Los Angeles), Georgia Jolink (Austin), Brian Kaplan (Global Co-Chair, Employment, New York), and Daniel Turinsky (New York) – shared their insights on the evolving landscape of US employment law under the new Trump Administration.

On March 6, 2025, Naomi Maryles (Managing Director, DLA Piper Israel Group) participated in a panel discussion on the topic, “Climbing the corporate ladder: Why women’s leadership in the business sector matters,” as part of World Emunah’s Women’s Leadership Conference in celebration of International Women’s Day. DLA Piper co-sponsored the event.

On March 17, 2025, we hosted an exclusive event for Israeli lawyers and general counsels, titled, “From regulation to litigation: Key insights into US legal trends and compliance.” Our DLA Piper colleagues – David B. Farkas (Of Counsel, Los Angeles), Josh Halpern (Of Counsel, Washington, DC), and Matthew Satchwell (Partner, Chicago) – delivered an engaging and practical session tailored to Israeli companies with a US presence. The morning also featured a fireside chat with our client Laurie Bennett (General Counsel, Hospitality) from Amadeus. She joined David Farkas for an insightful discussion packed with litigation advice, tips, and approaches.

That evening, we hosted an intimate dinner for our colleagues, along with litigation and intellectual property partners from Israeli law firms. A highlight of the evening was Josh Halpern’s anecdotes from his remarkable experiences as a US Supreme Court Clerk. It was an unforgettable night filled with enriching conversations, valuable networking, and delicious food. In addition to these events, David, Josh, and Matthew also spent two days meeting with a number of our clients around the greater Tel Aviv area.

On March 24–25, 2025, Jeremy Lustman attended two tech-related events in New York. The first event, Mind the Tech NY 2025, Calcalist and Bank Leumi’s seventh annual conference, spotlighted Israeli high-tech resilience, investment opportunities, and the future of AI-driven entrepreneurship. The second event, DLA Piper’s AI Innovation Reception as part of Law.com’s Legalweek 2025, provided a window into new and exciting technologies – including those within DLA Piper – that are entering the market and enhancing the provision of legal services.

On April 1, 2025, we partnered with Israeli law firm Goldfarb Gross Seligman to host an insightful conference for Israeli companies that already have, or aspire to establish, a presence in the US. DLA Piper colleagues Naftali Dembitzer (Partner, New York), David Pope (Partner, New York), and Ossie Ravid (Attorney, Palo Alto) delivered practical and timely insights on navigating critical US tax considerations across federal, state, and local levels. In addition to presenting at the conference, titled, “Gateway to the land of opportunity: Setting up your US operations,” our DLA Piper colleagues also met with clients and local Israeli firms in and around the Tel Aviv area, engaging in meaningful conversations and fostering new opportunities for collaboration.

Upcoming events

Global M&A Event with Meitar: May 12, 2025

Managing Partners Dinner featuring Rick Chesley: May 12, 2025

Antitrust and Competition Event: May 27, 2025

Global Employment Event with Herzog: September 8, 2025

Annual DLA Piper Charity Basketball Tournament: Q3

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.

On January 27, 2025, we sponsored 50 candy platters for Israeli Defense Force (IDF) soldiers through Candy Corner Israel’s “Sweets for Soldiers” initiative, which was launched after October 7 as a gesture of gratitude and solidarity. Through generous sponsorships of both individuals and organizations worldwide, Candy Corner has successfully delivered over 1,000 candy platters to army bases. The company has pledged to continue its efforts until the war ends.

On February 12, 2025, we spent the morning volunteering at Israel Microgreens in celebration of Tu B’Shvat. This cutting-edge vertical farm grows nutrient-packed “superfood” microgreens, and delivers them fresh to customers' doors within 24-hours of harvesting. We were hands-on with the entire process, resulting in a fun, fascinating, and truly rewarding experience.

We once again co-sponsored Comedy for Koby in support of The Koby Mandell Foundation, an organization dedicated to helping bereaved families who have tragically lost loved ones to acts of terror as they rebuild their lives. The tour ran from February 17–25, 2025, with shows in numerous cities across Israel.

On March 5, 2025, we treated our friends at FWMK Law Offices to lunch as a “thank you” for hosting the DLA Piper Israel team for nearly six months while our new offices were under construction. We are very appreciative of their hospitality.

On March 9, 2025, we partnered with Simcha Layeled, an organization dedicated to improving the quality of life for thousands of disabled and seriously ill children in hospitals and rehab centers across Israel, to throw a Purim party at Assaf Harofeh/Shamir Medical Center. We brought games, face and body paint, costumes, arts and crafts, and food to help hospitalized children celebrate the holiday.

Continuing our Purim-related activities, we hosted local clients and law firms at our office on March 11, 2025. Together, we packaged 350 mishloach manot (Purim gifts) for Smiles for the Kids, a nonprofit organization dedicated to spreading joy and comfort to those who need it most. The packages were delivered to injured soldiers at Tel Hashomer/Sheba hospital, soldiers serving in the Gaza Envelope, and displaced children from the north of Israel.

We supported several causes through sponsorships between March 21–April 4. These included:

An annual charity bike ride in support of Geerz, a transformative therapeutic program that empowers hundreds of Israeli children through the life-changing experience of mountain biking
The team representing Koach Eitan, which raises awareness and educates about stroke and aphasia, at the Ashkelon Marathon
The team representing Kav L’Noar, a mental health organization guiding at-risk youth toward becoming productive and responsible young adults, at the Jerusalem Marathon
NCSY Israel, which is committed to connecting, inspiring, and empowering teen olim (immigrants) to Israel, at the Jerusalem Marathon, and
The Koby Mandell Foundation, also at the Jerusalem Marathon.

On April 8, 2025, we volunteered at Pantry Packers by Colel Chabad, where we packaged 180 packets of lentils, contributing to the fight against food insecurity. Pantry Packers plays a vital role in addressing food insecurity by delivering crates of essential foods and household supplies to Israel’s most vulnerable families and senior citizens every month.

On April 9, 2025, we once again partnered with Israeli law firm Herzog on a pre-Pesach Market. This event highlighted and supported small businesses run by reservists and entrepreneurs from across the country that have been deeply impacted by the war.