Elbit Imaging Ltd. announced today that the District Court of Haifa in Israel has dismissed a purported securities class action against the company. The court ruled that the case was “inadequate” to be litigated as a class action.
Elbit announced that the case was filed against it in the District Court of Haifa in November 1999 by a number of institutional and other investors that held shares in Elscint Ltd. (Elscint). The claim
was filed with regards to an alleged continued and systematic oppression of the minority shareholders in Elscint, which allegedly caused monetary damages and which is claimed to have started in the agreements Elscint made for the realization of the main part of its assets, continued with the sale of the control in Elscint to the EIL and with the breach of a tender offer made by the Company to purchase of the minority shares of Elscint and ended with the agreements executed by Elscint for the acquisition of the hotel operations and the Arena commercial center in Israel, from EIL and Control Centers, respectively, at a higher consideration than their true values.
