Immediate Report – Motion for class action certification
Immediate Report – Motion for Class Action Certification
It is hereby reported that on November 12, 2020, the Company was served with a claim and a motion for its certification as a class action, filed in the Economics Department of the Tel Aviv District Court.
The motion was filed by a private individual claiming to be a shareholder of the Company ("Petitioner") against the Company, as well as the controlling shareholder of the Company – B-Communications Ltd., the Company's CEO and the Company's board members ("Respondents").
The motion is for certification of a class action for compensation of the Petitioner and members of the represented class (as detailed below) in respect of damages which the motion alleges were sustained by them, "as a result of the Company's omissions in its Tel Aviv Stock Exchange ("TASE") filings and the concealment of material information from the investors," in connection with a public report "concerning actions by the Ministry of Communications to eliminate the problem of duplicate subscriptions in ISP services, and the widespread and significant extent of the problem of duplicate subscriptions in the subsidiary Bezeq International ("Bezeq International") and their material adverse effect on the operations of the Company and subsidiary."
According to the motion, the class is defined as anyone who purchased the Company's shares between August 17, 2020 and October 30, 2020 and held all or some of said shares on October 30, 2020, with the exception of the Respondents and/or parties on their behalf and/or bodies affiliated with them.
The motion claims that the damages sustained by the class members as a result of the events that are the subject of the action total between NIS 55 million and NIS 65 million, based on an expert opinion attached to the motion.
The Company is currently studying the motion, and, at this point, is unable to assess its prospects.
Bezeq – The Israel 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.