Businessman Accused of Using Lawsuits to Eliminate Competitor

A Tel Aviv District Court judge has ruled that a series of class-action lawsuits totaling approximately 300 million shekels were filed with malicious intent, aiming to cripple a competing business. The lawsuits, filed against the company "Asinu Etz" (We Made a Deal), which markets and distributes tools, were allegedly orchestrated by a former business partner of the company's owner, Yosef Bivas. The former partner, who became a rival after a 2016 dispute, is accused of using consumers as fronts to file the suits.

During a four-month period in 2017, "Asinu Etz" faced five separate class-action lawsuits concerning product safety, with a combined claim of around 300 million shekels. While filed by different consumers, the court found that many had connections to employees of the rival company. Judge Amir Weitzenblit stated that the lawsuits, including one renewed for 103 million shekels, were not intended to benefit consumers but rather to impose financial and operational burdens on the competitor.

To deter such misuse of the legal system, the judge ordered the plaintiffs to pay exceptional legal costs of 100,000 shekels, hinting that the rival party behind the suits might also bear penalties. The plaintiffs' attorney, Menachem Hami Menahem, strongly criticized the ruling, arguing the court ignored the core issue: the marketing of potentially dangerous tools that did not meet standards, a fact that even led to an enforcement case by the Standards Institution. He warned that the verdict could discourage ordinary citizens from pursuing public safety cases due to fear of excessive financial penalties.