Cybersecurity unicorn Wiz is facing a NIS 200 million ($65 million) lawsuit for misconduct and misrepresentation over the alleged “phantom” acquisition of Israeli startup Raftt.

According to the lawsuit submitted to the Tel Aviv District Court on Monday, Raftt accuses Wiz of false representation regarding the purported purchase of the cloud software startup in December 2023, and of breaches of intellectual property rights and fiduciary duties.

Wiz is alleged to have bribed Raftt’s founders, hired away employees, and misappropriated the startup’s technology without compensating investors.

Founded in late 2020 by Gahl Saraf and Roy Iarchy, Raftt has developed a cloud platform for creating and sharing user-friendly virtual development environments. Its current investors and shareholders include venture capital funds Oasis and Cardumen Capital, as well as several angel investors.

In December 2023, when Wiz co-founder and CEO Assaf Rappaport announced the acquisition of Raftt and welcomed its employees and founders, he hailed the startup’s technology for providing a “best-in-class cloud-native platform” for development as well as security teams.

But the lawsuit filed by law firms ERM and Pearl Cohen........

© The Times of Israel