VR Capital Group Sues Over Maccabi Tel Aviv Share Transfer

VR Capital Group, which holds a 17.5% stake in the Maccabi Tel Aviv basketball club and is led by businessman Richard Deitz, has filed a lawsuit against ENDVR MTA, headed by Jason Levin, and Guy Harel. Harel had brokered the deal for Levin's company to acquire shares in Maccabi Tel Aviv from the Recanati family and Shimon Mizrachi.

The lawsuit, filed by attorneys from Barnea Jaffa Lande & Co., seeks $2.55 million in damages. VR Capital Group alleges that the defendants breached contract, unjustly enriched themselves, and acted negligently, causing harm to the plaintiff.

According to the claim, the defendants orchestrated a backroom deal with companies belonging to the Recanati family and Shimon Mizrachi. This involved using the Recanati family's right of first refusal on the Federman family's shares to transfer them to Levin's company. After VR Capital Group exercised its own right of first refusal for the Ben Ashkenazi shares, it was supposed to increase its stake to 55.5%.

Instead, the lawsuit contends, the defendants, along with Naftali and Niuko (companies of the Recanati family and Shimon Mizrachi), proceeded with another transaction to circumvent transfer restrictions in the shareholders' agreement. This involved transferring approximately 14% of the club's shares to Levin's company, with 7.5% from Naftali and 6.5% from Niuko, thereby infringing on Deitz's rights.