Lawsuit Against Charity Highlights Abuse of Class Action Law

Avir Kara, a Member of Knesset and former Deputy Minister, has launched a new weekly column in Globes titled "Threshold Guardian," aiming to expose fraud, injustices, and bureaucratic issues. The column will also address serial plaintiffs and the misuse of class action lawsuits, with the goal of prompting action where the system fails. Kara, founder of the "Hashulmanim" business owners' protest and leader of the "Enough Extortion" organization, is particularly focused on combating abusive class action suits.

A recent class action lawsuit filed by serial plaintiff Amit Verget against the "Yedidim" charity organization for NIS 2.5 million has ignited a fierce debate about "frivolous lawsuits" and the potential perversion of the class action mechanism. The lawsuit stems from a New Year's greeting SMS sent by Yedidim, a volunteer organization that provides roadside assistance. Verget claims the message caused him distress, despite his history of filing numerous lawsuits and sending hundreds of warning letters.

Kara, along with lawyers Rotem Darwish, Ron Geva, and Anar Bar Ilan, who are involved with "Enough Extortion," publicized the case on social media. They sought to identify individuals who received messages from Yedidim and opposed the lawsuit being filed in their name. The response was overwhelming, with nearly 2,000 people providing their details and expressing opposition, forming three WhatsApp groups to coordinate their stance and desire to speak in court.

The article argues that while class action lawsuits are intended to empower ordinary citizens against large corporations, a "vicious and cruel industry" of serial plaintiffs and lawyers has emerged. This industry allegedly seeks out minor infractions to file large lawsuits, often pressuring businesses into settlements due to the high cost of legal defense. Kara likens this to "protection money under the guise of law," where even those who strive to comply with the law can be targeted for minor oversights.

Verget's legal team responded, stating the lawsuit concerns the sending of promotional messages to over a million people without their consent, contrary to the law. They claim Yedidim sent multiple messages and commercial advertisements, and that the organization is placing itself above the law. They emphasized that while charity is commendable, it does not exempt anyone from legal obligations, referencing past cases involving other organizations.

Kara is promoting legislative changes, specifically Amendment 16 to the Class Actions Law, which he is advancing in the Knesset with support across the political spectrum. The amendment aims to require prior notification and attempts at resolution before filing lawsuits, particularly for small businesses. This measure seeks to restore the original intent of class action law, ensuring it serves as a tool against powerful entities rather than a self-sustaining business model. The article notes a significant decrease in class action filings since 2023, suggesting the ongoing efforts are having an impact.