News

| Class Actions & Derivative Suits
March 18th, 2018

Gornitzky successfully represented Eitanit Construction Products Ltd. in a hearing before a Supreme Court panel regarding development and paving fees. 

Gornitzky successfully represented Eitanit Construction Products Ltd. in a hearing before a Supreme Court panel, headed by President E. Hayut, regarding the demand for payment of development and paving fees in the amount of approximately NIS 18 million, issued to the company by the Nahariya Municipality. The Court approved the ruling and accepted the administrative appeal filed by our firm, thereby entirely dismissing the demands and adopting the interpretation of the relevant law presented by Eitanit, regarding the question of what is an "adjacent property".


The company was represented by Noam Ronen (Partner) and Sarit Naaman Shaag (Senior Associate).

October 29th, 2017

Gornitzky represented Sapphire D.N. Retail Ltd. in a class-action filed against a number of supermarket chain stores.

Gornitzky represented Sapphire D.N. Retail Ltd. in a motion to approve a class action filed against it (along with Shufersal, Rami Levy and Co-op), in which it was claimed that the respondents breached legal provisions once they made deliveries to customers in vehicles that do not include proper means of refrigeration. Following the court's acceptance of the Ministry of Health's standpoint, the sides agreed that the court shall first decide on the legal matter as to whether or not the laws presented in the motion state that the delivery of goods using refrigerated trucks is mandatory.

 

The court accepted the respondents' position and ruled that the laws to which the plaintiff made reference to are irrelevant since they have to do with the delivery system to the retail branch, not from the retailer to the consumer. Furthermore, the court accepted Gornitzky's position that the Ministry of Health admitted that as of yet there is no regulation regarding the delivery of goods from the retailer to the consumer and that the Ministry was currently pursuing the matter.

 

Sapphire D.N. Retail Ltd. was represented by Noam Ronen (Partner) and Nimrod Saville (Associate).

July 26th, 2017

Gornitzky represents the Israel Football Association in a motion to approve a NIS 38.5 million derivative suit against it.

The petitioners maintain that funds which were transferred by the Football Association should be claimed via third parties.

The Football Association was represented by Kfir Yadgar (Managing Partner), Ofer Fleischer (Partner) and Lior Sharabi (Associate).

July 20th, 2016

Yet another successful year and recognition of our outstanding abilities! This year, as in previous years, the esteemed ranking guide, Coface Bdi, top ranked our firm in 14 Tier 1 categories

Yet another successful year and recognition of our outstanding abilities! This year, as in previous years, the esteemed ranking guide, Coface Bdi, top ranked our firm in 14 Tier 1 categories. The leading rankings include Banking & Finance, Tax, Litigation & Dispute Resolution, Mergers & Acquisitions, Capital Markets & Securities, Infrastructure & Project Finance, Energy & Natural Resources, Corporate, Real Estate & Construction, Real Estate taxation, Class Actions & Derivative Suits, Telecoms & Media, Restructuring & Insolvency, Trusts, Estates & Wealth Management.

June 20th, 2016

Gornitzky represents Benefit (a part of the Phoenix group) in a successful dismissal of a labour law class action suit

Gornitzky represented Benefit  (a part of the Phoenix group) in a successful dismissal of a labour law class action suit with respect to allegations regarding negligent advice given by Benefit to retired employees of Discount Bank.

The court dismissed the claim against Benefit, giving a summary judgment accepting all of Benefit's claims regarding, inter alia, the lack of subject matter jurisdiction, the prima-facie evidence that there was no negligent advise, as well as the argument that the claim was barred under the statute of limitations.

 

Benefit was represented by Noam Ronen (Partner) and Nimrod Saville 

March 2nd, 2016

Gornitzky represents Osem Investments Ltd. (a part of the Nestle group) in a successful dismissal of a consumer class action suit with respect to alleged mislabeling of food products.

Gornitzky represented Osem Investments Ltd. (TASE: OSEM, a part of the Nestle group) in a successful dismissal of a consumer class action suit with respect to alleged mislabeling of food products and alleged misleading of consumers in certain provisions of regulation instruction no.1145 (labeling of packaged food), with regard to marking products using outer wrapping that hid part of the list of ingredients.

 

Osem Investments Ltd. was represented by Adv. Noam Ronen (Partner) and Adv. Nimrod Saville

April 27th, 2015

Gornitzky represented the TASE in the successful dismissal of a NIS 648 million motion to approve a class action filed against the stock exchange. 

Gornitzky represented the Tel Aviv Stock Exchange in the successful dismissal of a NIS 648 million motion to approve a class action, filed against the stock exchange in relation to the fees charged by it, and in connection with the articles of association and directions published by the Stock Exchange. Honorable Judge Haled Kabub accepted the arguments raised by Gornitzky (on behalf of the TASE), and dismissed the motion in limine, for reasons of lack of rivalry and lack of authority.

 

The Tel Aviv Stock Exchange was represented by Pinhas Rubin (Firm Chairman), Harel Shaham (Partner), Noga Haruvi and Amnon Biss.

December 23rd, 2014

Gornitzky represents Osem (of the Nestle group) in the successful and precedential dismissal of a consumer class action suit after a motion to allow the class action was previously granted.

Gornitzky represented Osem Investments Ltd. (TASE: OSEM, a part of the Nestle group) in the rare and successful dismissal of a consumer class action suit with respect to alleged mislabeling of cereal boxes against the company and Unilever,  after a motion to allow the class action was previously granted by the same judge.

 

Osem Investments Ltd. was represented by Noam Ronen (Partner) and Nimrod Saville.

 

For more information on our class actions practice, visit here.

January 28th, 2013

Mr. Pinhas Rubin, Firm Chairman at Gornitzky & Co., was featured in an article in The Marker discussing Amendment 20 to the Companies Law, which requires companies to establish a wage policy and strengthens the position of minority shareholders.

Mr. Pinhas Rubin, Firm Chairman at Gornitzky & Co., was featured in an article in The Marker discussing Amendment 20 to the Companies Law, which requires companies to establish a wage policy and strengthens the position of minority shareholders.

 

According to Mr. Rubin, the mistake with the amendment is that the board of directors knows the company from up close and knows what is best for the company and suddenly it will need to explain itself to shareholders, including those minority shareholders who only hold the shares for short periods of time. Mr. Rubin believes the amendment will cause disorder, a multitude of suits, and fear on the part of the serving directors due to the responsibility on their shoulders, "As soon as the general assembly says no, the executives will threaten to leave, the board of directors will revoke the decision made by the institutional investors, and then there will be all derivative suits that the board of directors will need to bravely stand up against."

August 30th, 2012

Judge Danya Kareth Meyer of the Tel Aviv District Court has rejected the request for a NIS 720 million class action against Yitzhak Tshuva and Delek Group.

Judge Danya Kareth Meyer of the Tel Aviv District Court has rejected the request for a NIS 720 million class action against Yitzhak Tshuva and Delek Group.

 

The request for the class action, filed by attorney Renan Gersht, was rejected by Judge Kareth Meyer based on evidence provided by Gornitzky & Co., which highlighted numerous and significant technical errors in the plaintiff's claims.

 

Tshuva and Delek Group were represented by Mr. Pinhas Rubin (Firm Chairman), Mr. Ofer Tzur (Partner, Head of Litigation), Mr. Kfir Yadgar (Partner) and Mr. Ofer Fleischer.

 

April 1st, 2012

Partner Communications (Orange) objected to a motion to file a derivative suit against its directors, which challenged the distribution of dividends and obtainment of loans.

Partner Communications (commercially branded as "Orange") filed an objection to a motion to file a derivative suit against its directors, which challenged the distribution of dividends by Partner and loans obtained during the same period. Gornitzky & Co. responded to the petition on behalf of Partner, claiming that the petition for the approval of the derivative suit is based upon fundamental economic and legal errors, and should therefore be dismissed.

 

Partner Communications (Orange) is represented by Mr. Pinhas Rubin (Firm Chairman), Mr. Lior Porat (Partner) and Ms. Sagit Ohana-Livne (Partner).

February 20th, 2018

Gornitzky represented Osem Investments Ltd. in a motion to approve a class action filed against it, in the amount of NIS 1 Billion.

Gornitzky represented Osem Investments Ltd. in a motion to approve a class action filed against it (along with Strauss Group), in the amount of NIS 1,020,000,000. In the motion, the plaintiff claimed that Osem had misled consumers to believe that its 'Kosher' chicken seasoning soup and its 'Kosher L'Mehadrin' chicken seasoning soup contained the same nutritional value, while in fact, the 'Kosher L'Mehadrin' seasoning soup was of poorer nutritional value. The plaintiff argued that Osem’s misconduct led, inter alia, to violation of the Israeli Consumer Protection Law 5741-1981.

 

Osem disputed the claims in the motion, and maintained that its 'Kosher' line of products is separate and distinct from the standard 'Kosher L’Mehadrin' line of seasoning soups, not only due to the level of compliance with Kashrut, but also with regard to the products' ingredients, with the 'Kosher' line of seasoning soups being produced exclusively from natural ingredients. Osem averred that the 'Kosher' and 'Kosher L'Mehadrin' lines of seasoning soups are distinguishable and their products are made from different ingredients, in a manner that would not mislead a reasonable customer.

 

Following a pre-trial, the plaintiff asked to withdraw his motion and his claim against the two respondents. Osem's demand for court costs was accepted by the court, which stated that the plaintiffs did not have legal claim against Osem and should not have filed the motion to begin with.

 

Osem Investments Ltd. was represented by Noam Ronen (Partner) and Amit Ron (Associate).

September 12th, 2017

Gornitzky represented Bank Hapoalim in a motion to approve a class action filed against it.

Gornitzky represented Bank Hapoalim in a motion to approve a class action filed against the Bank and its officers, in which it was argued that the bank refrained from including in its financial statements, the fact that provisions were made, pertaining to the investigation being conducted against the Bank in the United States. The motion allegedly claims that this is in fact material information which the Bank was required to disclose, in order not to mislead investors who purchased the Bank's shares.

 

Judge Ruth Ronen dismissed the motion in her ruling last week.

 

Bank Hapoalim was represented by Pinhas Rubin (Chairman of the Firm), Yaron Elhawi (Partner) and Shirin Gabbay-Metzeger (Associate).

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.

June 29th, 2016

Gornitzky represents the Tel Aviv Stock Exchange in a successful dismissal of a NIS 200  million class action in the matter of "Mannkind" 

Gornitzky represented the Tel Aviv Stock Exchange in a successful dismissal of a NIS 200 million high-profile class action suit with respect to the "Mannkind" stock - a bio-med company that registered its shares in the Israeli Stock Exchange.

 

See full story in Calcalist (Hebrew)


The Tel Aviv Stock Exchange was represented by Pinhas Rubin (Firm Chairman), Harel Shaham (Partner) and Lior Sharabi.

June 8th, 2016

Gornitzky successfully represented the directors of  Zmicha Investment House Ltd. In the dismissal of a motion to approve a derivative suit, targeting the company's unsuccessful investment.

Gornitzky successfully represented the directors of Zmicha Investment House Ltd., a TASE publicly traded company, in a motion to approve a derivative suit against the directors. The motion addressed allegations that the respondents (the directors) had unlawfully approved Zmicha's investment in Shemen Oil and Gas Resources Inc., in which Zmicha's controlling stockholder allegedly had a significant business interest. The motion also contended that the directors breached their duties of care and loyalty by approving this transaction in a negligent manner.

 

The Economic Department in the Tel-Aviv District Court (Honorable Judge Ruth Ronen), in a profound and well established decision, rejected the motion, ruling that Zmicha's investment in Shemen was neither an interested transaction nor a negligent one. The court ruling presents a comprehensive (and somewhat pioneering) analysis of the fundamental corporate governance issues that arise from the case, after which the motion was dismissed and the directors were awarded with legal fees and expenses.

 

The directors of Zmicha Investment House Ltd. were represented by Noam Ronen (Partner) and Noga Haruvi.

July 20th, 2015

Gornitzky represents Osem (a part of the Nestle group) in the successful dismissal of a motion to approve a consumer claim as a class action

Gornitzky represented Osem Investments Ltd. (TASE: OSEM, a part of the Nestle group) in the successful dismissal of a motion to approve a consumer claim as a class action with respect to an alleged violation of the Food Labeling Regulations (36 - Chocolate and 1145 - labeling prepacked food) and an alleged misleading of its consumers regarding the labeling of its Fitness cereals products ("Fitness White chocolate", "Fitness chocolate" and "Fitness Dark chocolate").

Haifa District Court dismissed the motion, and awarded Osem with unusual legal fees and expenses.    

 

Osem Investments Ltd. was represented by Noam Ronen (Partner) and Tom Alkalay

 

For more information on our class actions practice, visit here.

February 1st, 2015

Gornitzky represented Israel Corporation in the successful interim decision in a derivative suit against the company, whereby the court accepted the motion not to reveal attorney-client privileged information discussed in board meetings.

Gornitzky represented Israel Corporation in the successful interim decision in a derivative suit against the company, whereby the Economic Division of the Tel Aviv District Court accepted the motion not to reveal attorney-client privileged information discussed in board meetings. The derivative suit is in relation to the restructuring of the company's subsidiary, Zim Integrated Shipping Services Ltd.

 

Israel Corporation is represented by Pinhas Rubin (Firm Chairman), Noam Ronen (Partner) and Noga Haruvi.

 

For more information on our class actions practice, visit here.

March 18th, 2013

Gornitzky represented Partner Communications (Orange) in the successful dismissal of a derivative suit petition filed against the company's directors, which challenged the distribution of dividends and obtainment of loans. 

Gornitzky represented Partner Communications (commercially branded as "Orange") in the successful dismissal of a derivative suit petition filed against the company's directors, which challenged the distribution of dividends by Partner and loans obtained during the same period. The claim made by Gornitzky & Co., that the petition for the approval of the derivative suit was based upon economic and legal errors and should therefore be dismissed, was accepted by Judge Khaled Kabub of the Tel Aviv District Court.

 

Partner Communications (Orange) was represented by Mr. Pinhas Rubin (Firm Chairman), Mr. Lior Porat (Partner) and Ms. Sagit Ohana-Livne (Partner).

 

January 27th, 2013

Noam Ronen, a partner at Gornitzky & Co., was featured in an article in the Calcalist newspaper discussing a future in which the transfer of tort claims may no longer be prohibited.

Noam Ronen, a partner at Gornitzky & Co., was featured in an article in the Calcalist newspaper discussing a future in which the transfer of tort claims may no longer be prohibited, further to the recent precedent ruling of the Israeli Supreme Court in a case regarding a tort claim made by Banco Bilbao of Argentine.

 

According to Mr. Ronen, the prohibition to transfer tort claims is somewhat archaic in today's commercial world. "If we all agree that you can 'sell' or reassign a contractual right to receive money, as seen during the sub-prime crisis with the sale of mortgage loans from one bank to another, then why not permit the sale of the right to sue for damages?" Ronen believes that the day is approaching when tort claims will be a transferable asset, just as any other asset can be assigned, transferred and even sold.

 

He also points to the possibility that trading tort claims can be harmful to the world of class actions. "Suppose a town suffers from an environmental nuisance due to a factory. A seasoned claimant goes door-to-door and 'purchases' the claim rights from the townspeople. Now he is suing the factory, but not in a class action suit, but rather as his own personal claim, as the claim rights were sold to him. He can settle with the factory on behalf of all the residents, without them ever receiving full compensation, while he receives his recoupment without any criticism. Have we not then bypassed the class action mechanism and its purpose?"

June 18th, 2012

The Tel Aviv District Court dismissed in limine a motion to approve a derivative claim against Bezeq, alleging that the company's shareholders were harmed by the distribution of approximately NIS 7 billion in dividends. Bezeq was represented by Gornitzky & Co.

Judge Ruth Ronen of the Economic Department of the Tel Aviv Jaffa District Court dismissed in limine a motion to approve a derivative claim against Bezeq the Israel Telecommunications Corp. Ltd. (TASE: BEZQ), alleging that the company's shareholders were harmed by the distribution of approximately NIS 7 billion in dividends.


Judge Ronen accepted Bezeq's arguments that the claimant should not be permitted to file such claim, as he is neither a registered shareholder of the company nor a member of its board of directors. Additionally, Bezeq argued that the distribution of the dividends had been approved by the vast majority of the shareholders, at the company's general assembly.


Bezeq was represented by Mr. Pinhas Rubin (Firm Chairman), Mr. Lior Porat (Partner) and Mr. Asaf Avtuvi.

 

June 13th, 2011

In a precedential decision, Judge Yaakov Sheinman of the District Court in Petach Tikva, accepted arguments made by Gornitzky & Co. on behalf of ImageSat International and dismissed in limine the application to approve a NIS 4 billion derivative action against the company.

In a precedential decision, Judge Yaakov Sheinman of the District Court in Petach Tikva, accepted arguments made by Gornitzky & Co. on behalf of ImageSat International and dismissed in limine the application to approve a NIS 4 billion derivative action against the company.

 

The request for the in limine dismissal of the application was based on the innovative claim that a derivative action in the name of a foreign company cannot be filed in Israel under the Israeli Companies Law.

 

ImageSat International N.V., a leading provider of high-resolution, satellite earth-imagery, which launched and operates the EROS commercial satellites, was represented by Mr. Ofer Tzur (Partner, Head of Litigation) and Mr. Eli Cohen (Partner).