Ehud Barak Wins Defamation Case Against Netanyahu Ally Michael Eisenberg

A defamation lawsuit filed by former Prime Minister Ehud Barak and former Unit 8200 commander Ehud Shanior against venture capitalist Michael Eisenberg is nearing its end with a significant ruling in favor of the plaintiffs. Arbitrator Adv. Meir Mizrahi determined that claims published by Eisenberg regarding the founders of the cyber company Cybereason lacked basis and recommended a substantial donation to Sheba Medical Center as a resolution. The decision, reported by "TheMarker," was made last week and approved by both parties, with a court order expected soon from the Jerusalem District Court. The arbitrator clarified that the publication, which alleged Barak and Shanior harmed national security, was unfounded. Eisenberg stated he does not question their significant contributions to national security.

The dispute began in February 2025 following an anonymous X post alleging that Cybereason was founded using knowledge from Unit 8200 and that its sale to an American fund lacked necessary regulatory approvals, potentially endangering Israel's security. Eisenberg shared the post, translated it into English, and added his own commentary, suggesting Cybereason, Barak, and Shanior had acted recklessly and harmed national security by recruiting engineers from Unit 8200. Barak and Shanior subsequently filed a defamation suit seeking removal of the publication, a public apology, and 10 million shekels for a charity of their choice.

Eisenberg, known for his proximity to Prime Minister Benjamin Netanyahu and his role in diplomatic efforts, was appointed by Netanyahu in October 2025 as his representative to the American headquarters in Kiryat Gat overseeing the Gaza war ceasefire agreement. He has since represented the government in talks with the US and was reported to be Netanyahu's personal envoy for Gaza affairs. The arbitration process also addressed the sale of Cybereason, with Mizrahi noting that while the deal with the American fund did not require Ministry of Defense approval, it was reported to relevant parties, leading to discussions and an agreement to protect Israeli security knowledge. The arbitrator acknowledged Eisenberg's genuine concern but concluded his publication lacked a factual basis.

Cybereason, founded by Barak, Shanior, and other former Unit 8200 officials, developed the spyware "Grafton." The company was sold in late 2024 to the American investment fund AE Industrial for approximately $900 million and merged with RedLattice. The sale sparked public debate about transferring Israeli cyber technologies abroad and the required security oversight. Eisenberg based his defense partly on a letter from former intelligence officials warning of risks in the sale. A "Real Time" report on Kan 11 also raised questions about the deal, with former National Cyber Directorate head Gabi Portnoy commenting on the criticism. Eisenberg claimed the report supported his concerns, while Barak and Shanior alleged the publications stemmed from business motives and competitor interests, pointing to Eisenberg's ties with rival companies. Eisenberg denied business motives, asserting he acted out of concern for national security.

Cybereason, now merged with RedLattice, plans to go public on the New York Stock Exchange via a SPAC merger with Bold Eagle at an estimated valuation of $1.25 billion. The arbitration ruling, finding no basis for Eisenberg's publication, brings the defamation case closer to resolution. The recommended donation is designated for the Rehabilitation Medicine Department at Sheba Medical Center, which treats wounded soldiers.