Israeli startup Raftt, which provides developer environments in the cloud, today filed a lawsuit in the Tel Aviv District Court against cybersecurity unicorn Wiz. Raftt claims that Wiz mispresented that it had acquired Raftt for tens of millions of dollars, when in fact no acquisition of the company’s shares or its intellectual property was made. Raftt claims that instead of an orderly deal, Wiz paid personal bonuses to the company’s founders and employees, hired the entire team as one unit, and then used technology developed by Raftt to develop Wiz Code, one of the company’s leading products.
According to the lawsuit, in December 2023, Wiz announced that it had acquired Raftt, with some reports saying the deal was for $50 million. However, according to Raftt, no such transaction ever took place. No consideration was transferred to the company or its investors, and no approval was received from the board of directors for the sale of its assets. Instead, it is alleged that Wiz gave the founders and employees about $15 million in compensation, mainly through options and grants, a move defined in the lawsuit as “civil bribery” designed to bypass shareholders and attract the company’s human and technological capital directly to Wiz.
Raftt also alleges that Wiz continued to publicly boast about the “acquisition” months later, and even linked the move to the launch of Wiz Code in September 2024. Raftt claims that the product is based on knowledge and code developed by it, and that the transfer of employees was part of a coordinated plan and not a personal employment move.
Wiz: When a company is successful, there are those who try to take advantage of it
Raftt adds that several months after the team’s move, Wiz filed a patent application in the US, signed by former founders and employees of Wiz, and at the heart of the application was technology developed for Wiz and transferred to it as part of internal agreements. It is also alleged that one of the founders deleted hundreds of emails from the company’s servers after he learned of the suspicions, in an apparent attempt to destroy evidence.
Raftt attributes a series of legal violations to Wiz and its former founders, including breach of contract and fiduciary duty, theft of trade secrets, fraud and false advertising that harmed its business. Raftt is suing for an about NIS 200 million, and noted that the extent of the damage and profits generated from the product will only be clarified later in the process.
Wiz responded, “When a company is successful, unfortunately there are elements who try to take advantage of this and file lawsuits to pull the wool over their eyes. We are sad to see that this time the founders of Raftt – young and talented entrepreneurs – are being harmed by this and are a target. Like every lawsuit against Wiz in the past, we are certain that this lawsuit will also be deemed groundless.”
Published by Globes, Israel business news – en.globes.co.il – on February 9, 2026.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.
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