Our litigation team, comprised of Partners Shmuel Galinka and Eli Cohen and Associate Sireen Haddad, successfully represented Yair Goldfinger in the Supreme Court appeal that was submitted by his former partner at Mirabilis (ICQ), Sefi Vigiser, and other shareholders in Medipower Overseas.
After the District Court denied their suit, Vigiser and the other shareholders submitted an appeal to the Supreme Court against Goldfinger claiming that he was exploiting the minority group in order to dilute the value of their shares following Medipower’s issuing of stocks. This week, the Supreme Court denied the appeal and accepted all of our Litigation team’s claims. The court decided that the claim of discriminating against the minority is not an economical-business aspect that is important to the matter. After all, the fundraising was done to allow the company to move forward with business ideas that will bring in large profits, therefore promoting the shareholders’ interests.
The court ruled that the move included economic risks, and therefore as long as the stock issuing was done in good faith and in the company’s best interest, it was not the court’s place to intervene.
In the end, the Supreme Court decided that issuing the stocks at a reduced price won’t hurt the equality between the shareholders of the company.
