Immediate Report - Motion to certify a class action lawsuit
Immediate Report - Motion to Certify a Class Action Lawsuit
An immediate report is hereby submitted that on November 12, 2020 the Company was notified of a motion for approval of a class action lawsuit that was filed with the Tel Aviv District Court (the Economic Division).
The motion was filed by a private individual (“the Applicant”), who claims to be holding Company shares and shares of the controlling shareholder of the Company, B Communications Ltd. (“B-Com”), against the Company, B-Com and 72 additional respondents, including past and present officers in both companies (“the Respondents”).
The motion is for approval of a class action claim for compensation of the Applicant and the represented class members (as specified below) in respect of damages caused to them, as claimed in the motion, by the Respondents’ acts and omissions when they avoided disclosing to their investors material information they were allegedly required to disclose in accordance with the provisions of the law, with respect to a report by the two companies on November 9, 2020 that in the books of the subsidiary, Bezeq International Ltd. (“Bezeq International”) there are unexplained net asset balances (receivables net of payables) amounting to tens of millions of shekels, the bulk of which probably originates in periods more than 15 years ago.
The definition of class members under the motion is as follows:
A. Anyone who purchased Company shares from November 8, 2005 until November 9, 2020, except for the Respondents or anyone on their behalf.
B. Anyone who purchased B-Com shares on the Tel Aviv Stock Exchange from November 8, 2007 until November 9, 2020, except for the Respondents or anyone on their behalf.
The class action amount specified in the statement of claim is “above NIS 2.5 million (for purposes of subject matter jurisdiction)” while the economic opinion attached to the motion determines that “the estimated decline in the price of the security” due to the information included in the Immediate Report dated November 9, 2020 is 5.26%-5.40% for the Company and 9.07%-9.36% for B-Com.
The Company is studying the motion and is unable to evaluate the likelihood of success of the claim at the present stage.
Bezeq the Israeli Telecommunication Corp. Ltd.
The above information constitutes a translation of the Immediate Report published by the Company. The Hebrew version was submitted by the Company to the relevant authorities pursuant to Israeli law, and represents the binding version and the only one having legal effect. This translation was prepared for convenience purposes only.