Mass Tort brief
Corporate Liabilities, Local Protections, and Consumer Backlashes
Class actions sweep Israeli courts, targeting global booking platforms, media manipulation, and corporate financial diversion.
Mass Tort
US real estate developers face immediate TASE investor lawsuits — following disclosures that raised capital was diverted to personal debts.
BackgroundKohan Properties raised ₪412 million from Israeli institutional investors by issuing bonds on the Tel Aviv Stock Exchange. Mike Kohan is the firm's controlling shareholder and main executive.
- Proxima, representing the bondholders, filed the certification motion in the Tel Aviv District Court seeking ₪90 million in direct investor damages.
- The legal move follows disclosures that Mike Kohan diverted ₪30 million of investor funds to settle external personal debts, violating bond trust agreements.
- The lawsuit accuses the board of failing to disclose material transactions in the prospectus, undermining investor trust in US real estate bonds.
Mass Tort
Car importers face heavy reputational and legal risks — allegedly pocketing registration discounts designated for active military reservists.
BackgroundActive IDF reservists receive legal discounts on vehicle registration and licensing fees directly from the Ministry of Transportation. Colmobil is one of Israel's largest vehicle importers and distributors, handling thousands of registrations annually.
- The plaintiff, an active reservist, alleges Colmobil charged him the full standard registration fee of ₪2,786 despite his discount status.
- The lawsuit accuses the importer of paying the state the discounted rate and pocketing the ₪70 difference per vehicle.
- The certification motion in the Lod District Court seeks ₪2.5 million, highlighting reputational risks for companies accused of exploiting military benefits.
Mass Tort
Israeli courts are shielding multinational digital platforms from global class action liability — limiting litigation strictly to domestic consumers.
BackgroundPrice parity clauses prevent hotels from offering cheaper rates on their own websites than on booking platforms. Israeli consumer and antitrust class actions traditionally require local residency, but plaintiffs frequently test these jurisdictional boundaries.
- The court rejected the plaintiff's attempt to represent millions of foreign nationals booking Israeli hotels from abroad, preventing massive global damages exposure under Israeli law.
- The ruling cited the landmark Digitek precedent, cementing a strict jurisdictional protective barrier for multinational digital service companies operating in Israel.
- The antitrust class action over restrictive price parity clauses will now proceed strictly on behalf of local citizens, substantially lowering the platforms' ultimate financial risk.
Mass Tort
Walla readers are utilizing consumer protection laws to sue for news corruption — turning political media manipulation into a class action financial liability.
BackgroundCase 4000 centers on allegations that telecommunications giant Bezeq adjusted Walla's news coverage in exchange for political regulatory benefits. Bezeq was the parent company of Walla during the period in question.
- Citizen Yotam Carmon filed the motion in the Tel Aviv District Court, seeking to represent all regular readers of the website.
- The lawsuit argues Walla actively misled and deceived its audience, turning a breach of journalistic ethics into an actionable consumer deception claim.
- The plaintiff seeks millions of shekels in damages, aiming to establish a precedent that biased coverage under commercial duress constitutes a consumer injury.
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