Meitav Dash was ruled that the provident fund will repay hundreds of thousands of members a total of more than a quarter of a billion shekels

As part of a class action lawsuit filed against Meitav Dash Provident and Pension (-12.67% 1682), it was ruled that the provident fund will repay hundreds of thousands of members a total of more than a quarter of a billion shekels (NIS 1,500 each) for collecting management fees in violation of agreements. Meitav Dash shares are losing more than 10% following the ruling. This is a class action lawsuit filed by those who joined the Remuneration Provident Fund (established in 1957 as a subsidiary of Bank Hapoalim). The class plaintiffs, Israel Greenberg, who joined the fund in 1969 and Michael Levinard who joined the fund in 1984, claimed that over the years the provident fund raised the management fee contrary to what was agreed with them when they joined the fund.
Tel Aviv District Court Judge Dr. Michal Agmon Gonen ruled that although it was acquired by Dash as part of the Bachar reform, the fund had to comply with agreements that existed prior to its acquisition. In a comprehensive ruling regarding institutional investors in general and provident funds in particular, Gonen explains in detail the fiduciary duties that institutional investors owe to their colleagues: "The institutional bodies, including the defendant, Meitav Dash Provident and Pension Ltd., manage most of the money saved in the capital market. Under responsibility. "
"It should be remembered that behind all the institutional investors are millions of savers, employees, pensioners and other investors, who trust them and entrust their future in their hands, literally," the judge claims in the ruling. "The statement made at the outset:" With great power comes great responsibility "... This is the essence and core of the ruling - great power requires great responsibility - institutional investors have fiduciary duties, in light of the great power in their hands."
In this case, the injured are self-employed, employees and members of the regular army (by virtue of an agreement between the IDF and Bank Hapoalim) with whom the fund reached agreements not to charge management fees. To this end, Agmon Gonen stated that: "The field of institutional investments is regulated in detail, by laws, regulations and directives of the Commissioner."
"There is no argument that any regulatory change, other than explicit primary legislation, will expropriate existing contracts between savers and investors and the institutional body, intended by their very nature and nature to apply during a person's years of service, many years. The economic logic of the agreement "The savings of the members are in the hands of the fund for the purpose of keeping them and investing them for the purpose of a return on them until retirement. There is no doubt that these are still being met," the ruling said.