Client updates / Litigation

Many class action proceedings end in settlement. The settlement agreement is designed, inter alia, to facilitate an efficient and fair resolution to the proceeding, in a manner that also provides certainty to the parties. Essentially, it “takes on the risk” for all parties involved—the class action plaintiffs and their legal representation, the class, and the defendants. Settlement certification by the court constitutes res judicata, and ensures the preclusion of repeated claims regarding the subject of the settlement.

Dozens of motions were filed in recent weeks to certify class actions against some of the most well-known and leading publicly traded companies and reporting corporations in Israel. These motions to certify class actions are similar in nature (apart from the different defendants) and most were filed by the same plaintiffs-petitioners and through the same attorneys.

In early June 2021, the Tel Aviv-Yafo District Court handed down an important precedential ruling. The ruling expands the identity of an authorized agent, i.e., the entity to whom a statement of claim may be served and that thus subjects a foreign defendant to the jurisdiction of the Israeli court.

The commercial business world is a global one, and so are the disputes that arise within it. Such disputes are adjudicated in courts in various countries or in arbitration proceedings, with each procedure regulated under relevant domestic legislation. (For example, the Israeli Arbitration Law regulates Israeli arbitration proceedings.)

An Israeli court recently handed down a precedent-setting ruling in a case we litigated and won. This ruling marks a game changer in terms of the costs awarded in proceedings in Israel. In its ruling, the court granted our client an award of actual costs (i.e., the actual sums the client expended to litigate the proceeding).

Recently, there has been a dramatic increase in the enforcement of accessibility issues in Israel. More and more companies are facing requests for certification of class action suits for failing to make services accessible to people with disabilities. Such proceedings, exempt from court fees, are initiated by lead plaintiffs against big and small organizations, from both the private and public sectors.

How Israeli companies operating in the U.S. can use COVID-19 as a force majeure and the restructuring of debt in chapter 11 bankruptcy ?

Following a previous Israel Innovation Authority call for bids for companies developing technologies to help deal with the coronavirus crisis, the IIA has opened a channel to support companies facing financial hardships due to the virus.

Potential legal exposure when one makes use of a photograph displaying his or her own image without the permission of the photographer.

In December 2019, an expanded panel of seven Supreme Court justices published a precedential and important decision considering the issue of whether a party seeking to file a class action suit against a government agency must send a demand letter to the agency in advance of filing.

The Supreme Court recently ruled on the issue of whether sending a text message in the course of customer service constitutes a violation of the Spam Law.

This ruling constitutes a precedent in the way the court applied the standards of judicial review and held that the business judgment rule should not be applied if business decisions are made by officers while in a state of conflict of interest.

Chapter 8 of the new Insolvency and Economic Rehabilitation Law addresses the liability of officers and functionaries. The law’s main innovation is that – beyond liabilities toward the corporation, which already existed prior to the enactment of the law, such as fiduciary duty and duty of care – special liability will also be imposed on the corporation’s officers and functionaries.

A recently promulgated memorandum of law to amend judicial procedures proposes to add the possibility of filing claims against foreign entities in Israel for damage they caused in Israel as a result of acts or omissions performed outside of Israel.

The Ministry of Justice recently published a new memorandum regarding an amendment to the Companies Law. This amendment seeks to authorize the Registrar of Companies to administratively strike off a company from the Companies Register.

Recently, a four month proxy fight over control of an Israeli incorporated NASDAQ traded company was settled, following a series of proceedings held before the Tel Aviv District Court. At a crucial juncture, the Tel Aviv Court was asked to issue a temporary injunction over a transaction initiated by the board, which included a highly dilutive (24.9%) issuance of shares.

According to a ruling handed down recently by the Israeli Supreme Court, when a real estate asset is sold before the seller enters bankruptcy proceedings, and the seller has not paid the betterment tax, the local council is not obligated to grant the buyer approval for registering the property under his name. Thus, the buyer will be required to pay the betterment tax.

The Israeli Supreme Court has set a precedent by ruling that the Business Judgment Rule should also be applied to a company’s board of directors when it is deciding whether or not to file a derivative suit.

Recently, the Knesset has passed the Law of Insolvency and Economic Rehabilitation – which is aimed at updating the law on insolvency currently in effect in Israel. The Law will take effect in 18 months from now.