Israeli start-up Raftt Systems Ltd. filed a NIS 200 million lawsuit in the Tel Aviv District Court on Monday against cloud security company Wiz and two former Raftt founders, alleging that Raftt’s employees and technology were transferred to Wiz in a deal that was later presented publicly as an acquisition – without any payment to Raftt or its shareholders.
The lawsuit comes as Wiz is in the process of being acquired by Google in a $32 billion deal announced in March 2025.
According to the lawsuit, Raftt claims that the core technology behind one of Wiz’s main products, Wiz Code, was originally developed at Raftt and was transferred to Wiz in a way that breached the founders’ duties to the company, allegedly with Wiz’s involvement.
Raftt argues that while the Google-Wiz deal has been widely celebrated, a significant part of Wiz’s value – including Wiz Code – is based on technology that Raftt says was taken as part of the disputed transfer.
Israeli startup Raftt sues Wiz for $200m over unpaid deal
The lawsuit says that during 2023, Raftt was looking to raise more money and that its founders told investors they were considering fundraising, a sale, a merger, or an acquihire. According to the lawsuit, any such move would have required approval from the company’s board and should have been carried out in the company’s interest.
At the same time, Raftt alleges that the founders were holding private talks with Wiz aimed at moving Raftt’s employees – along with their knowledge and technology – to Wiz, without any formal deal involving Raftt itself and without any payment to the company.
According to the lawsuit, in late November 2023, the founders told investors that Raftt had stopped operating and that its employees had joined Wiz under individual employment contracts. Raftt argues that this was, in practice, a coordinated plan to create a new Wiz product based on Raftt’s team and technology.
Raftt claims that Wiz paid an estimated $15 million directly to the founders and employees, while Raftt’s shareholders received nothing. The lawsuit describes these payments as unusual incentives that were allegedly hidden from investors.
A central question raised in the lawsuit is whether Raftt was ever actually acquired. Wiz described the move as an acquisition in a December 2023 blog post titled “Raftt is Now Part of Wiz,” saying the deal would speed up its product development.
Raftt claims that Wiz publicly presented the move as an acquisition and that some media reports cited a price of about $50m., even though, according to the lawsuit, no approved deal for Raftt’s shares or intellectual property was ever completed, and no payment was made to Raftt’s shareholders.
The lawsuit also says that Wiz launched Wiz Code in September 2024 and that the product is based on technology developed at Raftt by its former employees.
Raftt further claims that Wiz filed a US patent application only months after the founders joined Wiz, while they were still serving as Raftt directors. According to the lawsuit, the patent is based on technology developed at Raftt or closely related to its work, and the application became public toward the end of 2025.
Raftt also alleges that after it confronted the founders, they accessed Raftt email accounts without authorization and deleted hundreds of emails related to contacts with Wiz and the disputed deal. Raftt says it later recovered the emails.
In addition to financial damages, Raftt is asking the court to issue several orders, including a ruling that Raftt owns the rights to Wiz Code and the related patent, an order stopping further use of the technology, and the transfer of documents and materials such as source code, development files, and internal communications.
Raftt estimates its damages at NIS 200 million. Wiz has denied the allegations, saying in statements reported by Israeli media that the lawsuit is an attempt to take advantage of the company’s success and that it is confident the claims will be dismissed.
According to the lawsuit, Raftt was founded in 2021 to develop tools for software developers. The company raised $5m.at a $16m. valuation and developed its own technology. The lawsuit says Raftt was backed by venture capital funds, including Aleph and Cardumen.
The case is expected to move forward in court in the coming months, with the defendants given 60 days from the time they are served to file a response.