Maccabi Tel Aviv Shareholder Sues Over Alleged Sidestepped Rights

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, who heads VR Capital Group, targets ENDVR MTA, led by Jason Levin, and Guy Harel, who brokered the deal. VR Capital alleges that Levin, Harel, and others conspired to circumvent its right of first refusal when acquiring shares in the club from the Rekanati family and Shimon Mizrahi.

The company claims the defendants engaged in a coordinated effort to grant Levin's group ownership while bypassing VR Capital's preemption rights. The lawsuit asserts that the defendants caused breach of contract, unjust enrichment, and negligence, and that share transfers and board decisions were made in violation of the shareholders' agreement, thereby harming Deitz's rights.

According to the complaint, the defendants orchestrated a deal designed to circumvent share transfer restrictions. VR Capital claims its right of first refusal was exercised concerning shares from the Federman family and later Ben Ashkenazi, which would have increased its stake to 55.5%. Instead, the suit alleges, the defendants proceeded with another transaction, transferring approximately 14% of the club's shares to Levin's company, with 7.5% from Naftali and 6.5% from Nioko.

Responses from Jason Levin and Guy Harel have not yet been received.