Fox of Harel Wiesel has announced that two class action lawsuits have been filed against the company, controlling shareholders and directors of the company. The claims for claims relate to the date of the company’s reporting of the transaction between it and Jumbo, regarding the granting of a franchise to the Fox Group to operate the retail chain stores. The deal was signed on July 24, 2020 and was only reported on September 15th.
According to the petitioners in both petitions, the company had to report the engagement in the transaction at the latest upon signing. In addition, they claimed that the reporting date caused damage to everyone who sold shares in the company between the date of signing the transaction and the date of reporting it, in light of the increase in the share price after the transaction was reported. The damage in one of the applications is calculated according to the increase in the share price on the trading day following the reporting of the transaction, and in the second application according to the increase in the share price in the week following the report. Fox said in a report that “the company is studying the requests through its legal counsel. The company’s position and its counsel delaying the report and the reporting date complied with the provisions of the law.”
The retail chain Max Stock, which went public in early September, before the report said that it did not know at the time of the IPO about Jumbo’s entry into Israel. Max Stock said that “in light of press releases and announcements to the stock exchange regarding the granting of a franchise to Fox Wiesel Ltd., to operate the Jumbo retail chain stores and open a store by the end of 2021 (according to the Fox Group announcement) or the end of 2022 (according to the Jumbo announcement) “From them, the company first learned about the existence of this agreement and without having any prior knowledge on the subject.”
They added that “already today, the company operates in a very competitive market, which includes many players in each of the product categories sold by it, in light of this and in light of the entry into the required market and the establishment of a nationwide store network of the Max Stock chain operated by the company. “It has 50 branches around the country, the company estimates that as of this date, it is not expected to have a material impact on the company’s operations.”
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