Israeli Courts Approve Settlements in Class Action Lawsuits Against Banks and Insurers

A Central District Court judge has approved a NIS 2 million (approximately $635,000) settlement in a class action lawsuit against Bank Leumi. The suit alleged that the bank systematically charged customers a higher foreign currency transaction fee than applicable, even for small purchases of goods or services. The settlement covers fees charged between 2014 and 2021, with eligible customers to receive 85% of the excess fee plus interest and linkage adjustments. Bank Leumi will also clarify its fee structure going forward. The plaintiff, Eli Maoz, will receive a NIS 60,000 award, and his lawyer, Guy Sharf, will receive up to NIS 440,000 in legal fees.

In a separate ruling, a Tel Aviv District Court judge dismissed a class action request against Amos Luzon Group and its executives concerning a merger with fintech company Triia. The plaintiffs, shareholders Walter Tim and Israel Keller, claimed Triia's valuation of NIS 397 million was inflated, causing NIS 31-37 million in damages to public shareholders. The judge ruled that such claims should be pursued through a derivative lawsuit, not a class action, as any damages were to the company itself, not directly to shareholders.

Additionally, a Central District Court judge authorized a class action lawsuit against insurance company Sh. Shlomo. The claim centers on the sale of comprehensive car insurance policies that bundled service riders for repairs and towing without itemizing their costs or offering customers a choice of at least two service providers. The judge found the insurance company liable for the actions of its agents, rejecting the argument that it was not responsible for independent agencies marketing its policies, establishing agency relations from the offer stage. Shlomo was ordered to pay NIS 30,000 in legal expenses.

Finally, a Haifa District Court judge rejected a class action against Carmeltown, the operator of the Carmel Tunnels, regarding alleged overcharging for administrative fees on traffic violations. While Carmeltown had profited NIS 8 million from these fees since 2010, the judge noted that the government recently reduced the allowable fee amount by 17% to compensate drivers for past overcharges. The court deemed any further restitution through a class action would constitute double compensation.