Israeli fraud protection company Riskified (NYSE: RSKD) CEO Ido Gal sent a letter to the company's employees this morning about the consequences of the planned reform of the judicial system. "The laws being enacted might lead to the breakup of our judicial system's independence. It is highly likely that the matter would lead to a major and protracted economic recession in Israel. More importantly, this will result in Israel changing from a democracy with liberal values into a more authoritarian state. I believe that only bad results will come from this 'reform.'"
We are in fact transferring all of our $500 million out of Israel
Gal added, "With Riskified's long-term success in mind, we have taken the following actions.
"1. We are in fact transferring all of our $500 million out of Israel. Our concern is that as the financial situation continues to deteriorate, the government will restrict transfers and withdrawals of large sums in order to protect financial stability.
"2. Expanding hiring at our R&D site in Lisbon. We have a limited number of relocation packages available, but we can also support people who wish to make the move themselves. Please contact Human Resources if you are interested.
"3. Participation in demonstrations is encouraged and is not considered a vacation day. This may be a marathon rather than a sprint, so please discuss with your managers to minimize any impact on our deliverables."
Riskified also mentioned the impact of the judicial coup in the company's expanded annual report in which it presented to investors the potential risks of investing in its shares. So far, a double-digit number of companies have added to their list of risks the effects of the government's planned reforms in the judicial system, encompassing almost every Israeli tech company that has published its extended report.
Published by Globes, Israel business news - en.globes.co.il - on March 8, 2023.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.