Court overturns Vesttoo’s seizure request against founders and execs

Congratulations to Attorneys Netanel Haim Guy Azulay, Itay Hass, Hilla Peleg, Sapir Gabay and Omer Haritan for their commendable efforts in securing a momentous verdict in the Vesttoo Company case.
The District Court in Tel Aviv has rendered a verdict in the case brought by the company against its founder, Alon Lifshitz, and former senior executives. In the motion submitted by it, the company claimed acts of forgery and fraud committed by its officers that resulted in the company’s collapse and a loss of approximately NIS 770 million. The Court has outright dismissed the proceedings against the defendants, citing insufficient evidence to support the allegations. The verdict marks the end of a prolonged legal battle that has been closely watched by the business community.
This ruling serves as a precedent, setting forth the principle that a trustee appointed by a company in foreign proceedings is not entitled to pursue legal action against third parties through a motion for instructions to the Israeli Insolvency Court.
Furthermore, The motion for instructions made in the present instance was submitted in an apparent conflict of interest. As noted above, The court has issued a verdict regarding the insufficiency of the evidence presented by the company in the case of Alon Lifshitz. As a result, the liens that were imposed on his assets at the outset of the procedure have been removed by order of the court. Their diligent work and expertise have led to this successful outcome.
Calcalist