News

| Yaad Gordon
April 3rd, 2017

Gornitzky's litigation team represents a founder of Ducool in a derivative action of USD 20 million against controlling shareholders.

Gornitzky's litigation team, led by Eli Cohen (Partner), represents one of the founders of Ducool Ltd., in a motion to approve a derivative action in the aggregate amount of USD 20 million against the controlling shareholders of the company.

Gornitzky's litigation team represents one of the founders of Ducool Ltd., a manufacturer of advanced air cooling systems, exported to the international market, in a motion to approve a derivative action in the aggregate amount of USD 20 million against the controlling shareholder of the company, the American private equity firm, AMatlin Patterson Global Advisors LLC, and its directors.

Within the framework of these proceedings, the fact that the respondents are located in the United States had to be taken into account in terms of whether or not the derivative action could indeed be filed, since it involved another jurisdiction. According to the Court's decision, a shareholder in an Israeli company cannot be prevented from filing a motion to approve a derivative action.

The founders of the company were represented by Eli Cohen (Partner) and Yaad Gordon (Associate).

March 31st, 2016

Gornitzky represents the founders of DuCool Ltd. in a dispute amongst company share-holders against the controlling shareholder in the company 

Gornitzky represented the founders of DuCool Ltd. (a company that specializes in the manufacturing of advanced air-conditioning systems, which are exported to international markets including the U.S., China and India), in a dispute amongst company share-holders against the controlling shareholder in the company, the American hedge fund, Matlin Patterson Global Advisors, LLC. its Directors.

Within the framework of these proceedings, two motions were filed by the founders of the company for the approval of two derivative actions at the District Court in Tel Aviv (Financial Department), as well as three actions at the Regional Labor Court.

In March 2016, Haifa District Court acceded the motion to suspend proceedings and appoint a trustee, as requested by the company (ex parte), a motion which was filed, according to the founders, for the purpose of dismissing proceedings which were initiated by the founders, represented by Gornitzky & Co., against the American Fund.

In an expedited process, within a number of days, the office team strived to suspend proceedings. In an unconventional ruling by the Haifa District Court, the court ordered the cancellation of the injunction to suspend proceedings, together with the annulment of a trustee, and respectively the ongoing proceedings conducted by the group of founder were restored.

 

The Company's founders were represented by Adv. Eli Cohen (Partner), Adv. Michael Ayalon (Partner), Adv. Cobi Marcus and Adv. Yaad Gordon.

November 29th, 2016

Gornitzky represented Audio Pixels Holdings Ltd. and additional parties involved, in a successful dismissal of a motion to approve a derivative suit against them, in the amount of NIS 500 million

Gornitzky successfully represented Audio Pixels Holdings Ltd. (an Australian public company) as well as its Israeli subsidiary, Audio Pixels, officers of the company and additional parties involved, in the dismissal of a motion to approve a derivative suit against them, in the amount of NIS 500 million.

 

Lod District Court (the honorable Judge Dr. Borenstein) dismissed the motion to file a derivative suit against Audio Pixels, in the amount of approximately NIS 500 million, in relation to the claim of alleged technology theft, concerning unique developments in the audio field.

 

The technology to which the motion refers to is in fact a unique technology for the manufacturing of speakers, developed by Audio Pixels, based on micro electromagnetic structures (MEMS) and not on the customary classic speaker components in today's industry, which is expected to provide unprecedented performance in the field of audio. Several months ago, Audio Pixels reported a cooperation agreement for the production of chips together with the Israeli company TowerJazz. Recently, the company also proceeded to report to its investors its progress in the developmental stages, along with the unique cooperation with Bar Ilan University, in a project aimed at assisting the blind in sight analysis via the use of part of the technology it is developing.


At the beginning of 2013, Amir Baron, a software engineer, filed a request for the approval of a derivative suit against Audio Pixels Holdings Limited, its Israeli subsidiary, Audio Pixels, and several other executive officers at Audio Pixels along with other individuals involved.
Within the framework of the motion to approve a derivative suit, filed in the amount of about NIS 500 million, it was claimed that the intellectual property used by Audio Pixels belongs in fact to an Israeli Start-up company called B-4 (no longer active today, in which Baron worked together with the respondents) and that one of the respondents, who left B-4 in 2006, took the technology with him and used it, together with other respondents, in order to establish Audio Pixels, and in practice, the technology used by Audio Pixels today is B-4's intellectual property.


In a lengthy and detailed ruling, the court dismissed the motion to approve a derivative suit .
Furthermore, the court determined that taking into account that B-4 is at the end of the road and that the purpose of the suit is to serve the personal interests of the share -holders, it cannot be determined that the purpose of the suit is indeed in favor of the company. Furthermore, the court ruled that the petitioner's good-faith should be questioned.


Due to these reasons, the court decided to dismiss the motion to file a derivative suit and to impose the expenses on the petitioner.

 

The Audio Pixels group, its subsidiaries and other parties involved were represented by Eli Cohen (Partner), Or Lustgarten and Yaad Gordon.