Lawyer drops NIS 50m suit against Tao
Also agrees not to claim court costs, initiate another derivative action on the same issue, or get involved in such a lawsuit filed by anybody else.
A NIS 50 million derivative action against Tao Tsuot and several of its directors was dropped on Tuesday after it was made clear to the petitioner, attorney Amit Manor, that his claim was too shaky to hold up in court.
He also agreed not to claim court costs, initiate another derivative action on the same issue, or get directly or indirectly involved in such a lawsuit filed by anybody else.
The suit, naming current and former Tao directors Yossi Arad-Hadad, Shlomo Ness, attorney Bruria Lekner, Dror Lifshitz and Elina Frenkel Ronen, was initially filed in early January by Aharon Balboul, owner of 100,000 Tao shares, who subsequently withdrew from the case, only to be replaced by Manor.
The basis for Manor's claim was that the directors breached their legal obligation for fiduciary trust and caution by favoring the interests of controlling owner Ilan Ben-Dov over those of the company.
Their actions, he charged, exhibited outrageous lack of good faith by improving Ben-Dov's standing with Bank Leumi, in light of personal guarantees he provided, when they transferred rights on put options to the bank rather than realizing them for the company's benefit.
"We are naturally satisfied with the removal of the claim, but also regret the intolerable ease with which petitioners file baseless claims against directors without even a minimal knowledge of the facts underlying their charges," said Lekner, who chairs the company's audit committee.