Maccabi Tel Aviv Shareholder Sues Over Alleged Share Transfer Scheme

VR Capital Group, a shareholder holding 17.5% of Maccabi Tel Aviv basketball club, has filed a lawsuit seeking $2.55 million in damages. The suit, initiated by businessman Richard Deitz, targets ENDVR MTA, led by Jason Levin, and Guy Harel, who brokered the acquisition of shares in the club from the Rekanati family and Shimon Mizrahi.

VR Capital alleges that Levin, Harel, Naftali, and Nioko engaged in a coordinated effort to grant Levin's group ownership of the club, circumventing VR Capital's right of first refusal. The company claims the defendants breached contract, unjustly enriched themselves, and acted negligently, causing financial harm.

According to the lawsuit, the defendants allegedly orchestrated a deal to bypass share transfer restrictions outlined in the shareholders' agreement. This involved utilizing the Rekanati family's right of first refusal for the Federman family's shares to transfer them to Levin's company. VR Capital asserts it exercised its right of first refusal for both the initial transaction with Levin's company and subsequent shares belonging to Ben Ashkenazi, which would have raised its stake to 55.5%.

Instead of respecting VR Capital's rights, the lawsuit claims the defendants proceeded with another transaction to circumvent transfer limitations. Approximately 14% of the club's shares were reportedly transferred to Levin's company: 7.5% from Naftali and 6.5% from Nioko.

Meanwhile, Shimon Mizrahi has scheduled another meeting with Deitz in France ahead of the EuroLeague game against Villeurbanne. This follows a previous meeting requested by Mizrahi before the local derby, aimed at resolving disputes and preventing arbitration. Both parties failed to reach an agreement during their prior encounter.

Responses from Jason Levin and Guy Harel were not immediately available.