Elbit Imaging Announces Class Action Settlement
April 06 2016 - 7:18AM
Elbit Imaging Ltd. ("
EI" or the
"
Company") (TASE:EMITF) (NASDAQ:EMITF) announced
today that the Company and some other defendants (i.e: the
Company's and Elscint's former directors and officers) have entered
into a settlement agreement with the Plaintiffs in class action
#1318/99 (Gadish v. Elscint et. al.) (the
"
Settlement"). The Settlement generally provides
that in consideration of a total payment of NIS 46 million
(approximately $11.9 million) (a) the Hotels & Marina
Transactions cause of action (as well as any other cause of action
that is – or may be – directed against EI and its former directors
and officers and to Elscint and its former directors and officers)
shall be exhausted with respect to all of the defendants; and (b)
all other causes of action shall be exhausted with respect to EI
and its former directors and officers as well as with respect to
Elscint and its former directors and officers.
The Company's share in the aforementioned
compensation is NIS 4 million (approximately $1 million) and the
rest will be financed by the Company's D&O Insurance.
For further information with regards to the
class action, please see Note 14B. (1) of our Annual Consolidated
Financial Statements as of December 31, 2015 filed as Exhibit 99.1
to our Report on Form 8-K filed with the SEC on March 31, 2016.
The Settlement is subject to the court's
approval and additional preconditions fulfilment as determined in
the agreement, including, but not limited to the right of the
insurer to terminate the Settlement under certain
circumstances.
About Elbit Imaging
Ltd.
Elbit Imaging Ltd. operates in the following
principal fields of business: (i) Commercial centers - initiation,
construction, and sale of commercial centers and other mixed-use
property projects, predominantly in the retail sector, located in
Central and Eastern Europe. In certain circumstances and depending
on market conditions, the Group operates and manages commercial
centers prior to their sale. (ii) Hotels - hotels operation
and management. (iii) Medical industries and devices - (a) research
and development, production and marketing of magnetic resonance
imaging guided focused ultrasound treatment equipment, and (b)
development of stem cell population expansion technologies and stem
cell therapy products for transplantation and regenerative
medicine. (iv) Plots in India - plots designated for sale initially
designated to residential
projects.
Any forward-looking statements in our releases include
statements regarding the intent, belief or current expectations of
Elbit Imaging Ltd. and our management about our business, financial
condition, results of operations, and its relationship with its
employees and the condition of our properties. Words such as
“believe,” “expect,” “intend,” “estimate” and similar expressions
are intended to identify forward-looking statements but are not the
exclusive means of identifying such statements. Actual results may
differ materially from those projected, expressed or implied in the
forward-looking statements as a result of various factors
including, without limitation, a change in market conditions, a
decision to deploy the cash for other business opportunities and
the factors set forth in our filings with the Securities and
Exchange Commission including, without limitation, Item 3.D of our
annual report on Form 20-F for the fiscal year ended December 31,
2014, under the caption “Risk Factors.” Any forward-looking
statements contained in our releases speak only as of the date of
such release, and we caution existing and prospective investors not
to place undue reliance on such statements. Such forward-looking
statements do not purport to be predictions of future events or
circumstances, and therefore, there can be no assurance that any
forward-looking statement contained in our releases will prove to
be accurate. We undertake no obligation to update or revise any
forward-looking statements.
For Further Information:
Company Contact
Ron Hadassi
Chairman of the Board of Directors
Tel: +972-3-608-6048
Fax: +972-3-608-6050
ron@elbitimaging.com
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