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Class action: the power of the many
The Class Actions Law, Tashsav-2006, makes it possible to conduct a claim on behalf of a group in the cases listed in the second addendum to the law or under an express statutory provision. Possible examples include customers who were overcharged, consumers who were misled, and investors harmed by false reporting, subject to the conditions of the law. The proceeding begins with a motion for certification: the court examines substantial common questions and the reasonable possibility that they will be decided in favor of the group, the efficiency and fairness of the proceeding, and the suitability of the representation and good faith. Approval of the motion is not a judgment in favor of the group. Compensation, reward, and attorneys' fees depend on the outcome of the proceeding and on court approval.
Derivative action: in the name of the company, against its directors
When the harm is to the company and it does not enforce its rights, a shareholder or director may seek approval for a derivative action on its behalf, subject to the conditions of the Companies Law. As a rule, a prior approach to the company is required, subject to exceptions. A creditor may proceed through this route only in cases the law permits, including an unlawful distribution; not every creditor has a general right to sue on behalf of the company. The court examines, among other things, the company's best interests and the applicant's good faith. It is possible to request disclosure of documents for the purpose of examining the application, subject to the evidentiary foundation and the conditions of the law, and not as an automatic right to sweeping inspection.
The defense against these proceedings
Businesses, corporations, and officeholders that receive a motion to certify a class action or a derivative action require a swift strategic response: attacking the cause of action and the class, withdrawal and settlement arrangements at the right stages, and management of insurance and communications exposure. An application that is handled properly at the certification stage is stopped before it turns into an avalanche.
Representation in class and derivative proceedings
Israel Arama represents representative plaintiffs and shareholders in class and derivative proceedings, as well as companies and officeholders in defending against them. Contact us for an initial consultation without obligation.
Class action: the power of the many — what is important to know?
The Class Actions Law, Tashsav-2006, makes it possible to conduct a claim on behalf of a group in the cases listed in the second addendum to the law or under an express statutory provision. Possible examples include customers who were overcharged, consumers who were misled, and investors harmed by false reporting, subject to the conditions of the law. The proceeding begins with a motion for certification: the court examines substantial common questions and the reasonable possibility that they will be decided in favor of the group, the efficiency and fairness of the proceeding, and the suitability of the representation and good faith. Approval of the motion is not a judgment in favor of the group. Compensation, reward, and attorneys' fees depend on the outcome of the proceeding and on court approval.
Derivative action: in the name of the company, against its directors — what is important to know?
When the harm is to the company and it does not enforce its rights, a shareholder or director may seek approval for a derivative action on its behalf, subject to the conditions of the Companies Law. As a rule, a prior approach to the company is required, subject to exceptions. A creditor may proceed through this route only in cases the law permits, including an unlawful distribution; not every creditor has a general right to sue on behalf of the company. The court examines, among other things, the company's best interests and the applicant's good faith. It is possible to request disclosure of documents for the purpose of examining the application, subject to the evidentiary foundation and the conditions of the law, and not as an automatic right to sweeping inspection.
The defense against these proceedings — what is important to know?
Businesses, corporations, and officeholders that receive a motion to certify a class action or a derivative action require a swift strategic response: attacking the cause of action and the class, withdrawal and settlement arrangements at the right stages, and management of insurance and communications exposure. An application that is handled properly at the certification stage is stopped before it turns into an avalanche.
This information is for initial orientation about the service and contact process. It is not individual legal advice.
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