Tel Aviv Court Rejects Shareholder Lawsuit Against Luzun Real Estate Over TriA Merger

A Tel Aviv District Court has dismissed a class-action lawsuit filed three years ago against Luzun Real Estate and Finance, formerly TriA. The lawsuit, brought by former shareholders Walter Team and Israel Keller, alleged that they were harmed by an inaccurate valuation of TriA during its 2022 merger with Luzun. The plaintiffs, represented by attorney Lior Lahav, claimed that TriA was overvalued at 323 million shekels, arguing its true worth was between 128.5 and 162.7 million shekels, partly because some of TriA's revenues were conditional.

The court, presided over by Judge Michal Rosen-Ozer, accepted the defense's argument that any alleged damage was primarily to the company itself, not directly to individual shareholders. Therefore, the proper legal avenue for such claims would be a derivative lawsuit on behalf of the company, rather than a class-action suit by shareholders. The court also ruled that the plaintiffs did not have an individual claim under the Securities Law, as they did not conduct any securities transactions around the time of the merger.

The defendants included Amos Luzun, the controlling shareholder, his daughter Lia, and other company officials. The plaintiffs' attorney, Lior Lahav, stated that they respect the court's decision and will file a derivative lawsuit in the coming days, as advised by the court.