Mass Tort brief
Billion-Shekel Class Actions and Statutory Shields
District courts certify mega-claims against major banks and tech resellers while the Knesset moves to protect small retailers.
Mass Tort
Certification of the ₪5B checking account lawsuit threatens the core profitability of Israeli retail banking — putting windfall margins from zero-yield deposit spreads on the line.
BackgroundWhen the Bank of Israel raised benchmark interest rates to combat inflation, commercial banks immediately increased lending and overdraft rates while keeping checking account deposit yields at zero percent. Israeli households maintain roughly ₪400 billion in unremunerated demand deposits across domestic banking institutions.
- District Court Judge Shmuel Bornstein cleared the class action to proceed on claims of unjust enrichment and breach of banking fiduciary duty.
- The certified lawsuit targets banking revenues generated between 2022 and 2025, when lenders extracted record net interest margins while paying zero return on balances.
- The defendant institutions stated they will file immediate appeals to the Supreme Court, warning that retrospective deposit repricing threatens banking system stability.
Mass Tort
Amendment 16 fundamentally rebalances Israeli consumer law — dismantling predatory litigation against small merchants by establishing a mandatory 60-day right to cure.
BackgroundIsrael's Class Actions Law of 2006 created a broad litigation framework that led to thousands of consumer class actions filed annually against local retailers over minor technical infringements. Small business federations have long lobbied for statutory shields against opportunistic settlements demanded by claimant attorneys.
- The approved amendment establishes a mandatory 60-day pre-action cure period, granting businesses time to rectify non-compliance before class litigation can be certified in court.
- The mandatory cure mechanism applies to five common commercial claims: commercial spam messages, food packaging tare weight deductions, unit pricing, and labeling errors.
- For businesses with annual revenues up to ₪50 million, the reform extends identical 60-day prior notification protections against commercial website accessibility lawsuits.
Mass Tort
The Haifa benzene lawsuit reopens environmental liability for Bazan Group — threatening court-ordered operational halts during routine industrial maintenance cycles.
BackgroundThe Haifa Bay petrochemical complex hosts Israel's primary crude oil refining and aromatics manufacturing infrastructure, located adjacent to dense residential suburbs. Benzene is a recognized human carcinogen subject to strict hourly and daily airborne concentration ceilings under the Clean Air Law.
- The legal claim cites documented spikes in benzene air pollution between October 8 and October 12, 2026, during routine maintenance at Gadiv's aromatics facility.
- Plaintiffs demand individual damages of ₪1,000 per exposed resident alongside court-mandated judicial injunctions under the Prevention of Environmental Nuisances Law.
- Bazan stated to securities regulators that it is reviewing the allegations with external legal counsel while maintaining its facilities adhered to official Ministry of Environmental Protection protocols.
Mass Tort
The ₪3.1M Tempo ruling strictly enforces product liability on beverage manufacturers — holding bottlers liable when missing traceability records fail to disprove structural defects.
BackgroundIsrael's Defective Products Liability Law of 1980 imposes strict statutory liability on product manufacturers for physical injuries caused by defective goods without requiring proof of fault. Beverage bottling companies conduct high-pressure carbonation and glass integrity testing to prevent violent explosive failures.
- Judge Idit Katzeboy ruled that Tempo failed to maintain specific pressure-testing and batch traceability records, triggering the statutory legal presumption that the bottle was defective.
- The court dismissed Tempo's argument that crate mishandling or glass bottle supplier Phoenicia was responsible, affirming that commercial distributors bear non-delegable safety obligations.
- The ₪3.11 million award compensates the 28-year-old bartender for total loss of vision in his left eye, extensive medical treatments, and permanent reduction in lifetime earning capacity.
Mass Tort
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