Elbit Imaging Ltd. (Elbit Imaging), a diagnostic imaging company, announced the developments in its legal proceedings. Motions filed by the defendants, the District Court of Tel Aviv has partially dismissed without prejudice plaintiff’s motion to certify a purported claim as a class action, in the framework of Civil Case number 3000/99.
The said claim was filed in September 1999 by a shareholder in Elscint Ltd. (Elscint) against Elscint, the company, Elbit Holdings, Elron Electronic Industries Ltd. and six former directors of Elscint together with an application to certify the said claim as a class action. The plaintiff claimed that the company acted, through Elscint’s directors, systemically with the aim of emptying and diluting Elscint of its business, assets, capital and value, whilst enriching other companies in the group at the expense of Elscint and at the expense of the minority shareholders of Elscint. The plaintiff also alleged that several significant transactions executed by the company and Elscint in 1998 were all done whilst oppressing the minority shareholders of Elscint and in contravention of Section 235 of the Companies Ordinance.
In addition, further to the company’s announcement on January 25, 2009, with regards to Civil Case number 1318/99, the plaintiffs submitted an appeal, arguing that the District Court of Haifa erred in dismissing their motion to certify their claim as a class action. The company is studying the appeal and intends to defend the case vigorously.
For additional details in respect of the above mentioned claims, see the company’s Annual Report on Form 20-F for the fiscal year ended December 31, 2007, under “Item 8. Financial Information – A. Consolidated Statements and Other Financial Information – Legal Proceedings”.