Vertical Field Employees Sue for Unpaid Wages and Pensions

Eleven former employees of the ag-tech startup Vertical Field have filed a lawsuit seeking over 769,000 shekels (approximately $205,000) in unpaid wages and pension contributions. The employees allege that the company, backed by billionaire Michael Mirilashvili's "Be'er Yitzhak Energy," has been unable to meet its financial obligations since October 2025, failing to transfer pension deductions from employee salaries and employer contributions to pension funds. They claim the company is insolvent and owes suppliers more than 1.5 million shekels.

This is not the first insolvency proceeding related to Vertical Field. Previously, the company's controlling shareholder, Be'er Yitzhak Energy, filed a similar request, which was dismissed by the court. The court had expressed caution regarding a parent company seeking insolvency for its subsidiary, suggesting it could be a tactic to alter the balance of power with other creditors. The previous request was denied due to insufficient factual basis regarding the company's debts to its parent, though the court left the door open for employees to file their own independent claim.

The current lawsuit follows a prior dispute and subsequent court-approved settlement between Vertical Field and Rami Levy, a major supermarket chain. Rami Levy had loaned Vertical Field $1.5 million, which it claims has not been repaid. Rami Levy had opposed the previous insolvency filing, arguing it was a "fictitious request" aimed at evading debt repayment. Vertical Field countered that the loan was automatically converted to shares upon maturity, making Rami Levy a shareholder, not a creditor.

Rami Levy stated they entered the agreement based on Mirilashvili's explicit promise to support all of Vertical Field's commitments. The company claims the project did not advance, and the loan and agreed-upon interest remained with Vertical Field, which refused to return the funds, leading to breaches of contract. Vertical Field disputes this, arguing Rami Levy cannot reverse the share conversion simply because the stock value is unfavorable.

Vertical Field, which develops and produces agricultural systems and crops, was once envisioned for a stock market IPO. However, market changes and business downturns led to its current financial difficulties. The employees' current action aims to initiate insolvency proceedings to recover their owed funds.