approved: compensation for investors in "Shemmen" case will amount to NIS 3.375 million instead of 60 million

Tel Aviv District Court's Economic Department approved a settlement in a class action lawsuit filed against former chief of staff and former oil and gas "Shemen" company chairman Gabi Ashkenazi and former CEO Yossi Levy. As part of the arrangement, the judgment stipulates that the company and the defendants will pay NIS 4.5 million. The insurance company will pay oil.
The lawsuit filed by Yogev Halfon stood at NIS 65 million. According to the allegation, the allegedly misleading reports were published when the officers already had negative information about the prospects for oil production in the drilling. Confirmation of the compromise deletes the lawsuit, so the allegations did not become clear.
Under the approved compromise, it was stipulated that those who would be entitled to receive part of the compensation are institutional entities and private investors from whom NIS 30 million was raised on September 22, 2013 and September 23, 2013. Of the total amount of the settlement, an amount of NIS 300,000 will be deducted in favor of the plaintiff, and an additional amount of NIS 825,000 as attorneys' fees. Hence, the compensation for investors will eventually amount to NIS 3.375 million.
"In examining the settlement," wrote the composition's head, Deputy Chief Justice Khaled Kabov, "I put weight on the fact that the settlement includes compensation that is estimated at approximately 50% of the maximum amount of damage done to the members of the group. This amount was calculated after an examination by Prof. Galai , Whose opinion was attached to the request for approval of the settlement. Moreover, the amount of compensation is expected to be transferred to the group members within a relatively short period of time. "
Attorneys Gabi Ashkenazi and Yossi Levy were represented by attorneys Dror Severansky, Nessie Angel Katz and Zvi Agmon of Agmon & Co.. They said: "Under the settlement agreement, the Phoenix insurance company will pay the group members and attorneys representing the total amount of NIS 4.5 million. The payment according to the settlement agreement will be made by the insurance company - and not by oil or its office holders."