Landowners Threaten Personal Lawsuits Against Directors in Tiberias 'Kinneret City' Project Dispute
The dispute over the massive 'Kinneret City' development project in Tiberias has escalated as landowners now threaten to sue the directors of Ab-Gad personally. Earlier in June, the landowners filed a lawsuit against Ab-Gad and its subsidiary Ab-Gad Kinneret, claiming the company lacked the financial capacity to execute the multi-billion shekel project. They accuse the directors of approving contracts worth billions despite this inability. Ab-Gad responded by calling the threats an improper pressure tactic and warned that the landowners' conduct might expose their own representatives to personal liability.
Ab-Gad, primarily active in urban renewal in central Israel and owned by the Rezon family, entered the Kinneret City project in early 2023 with local landowners led by Zohar Oved, former mayor of Tiberias. The ambitious plan includes seven hotels, about 1,000 rooms, a convention center, 21,000 square meters of commercial space, and 500 apartments, with an estimated cost of around 3 billion shekels. Ab-Gad had planned to list its subsidiary responsible for the project on the stock exchange at a valuation of approximately 100 million shekels. However, operational difficulties and disputes with landowners led to the cancellation of the IPO.
In February 2026, the landowners announced contract cancellations and filed a 20.5 million shekel lawsuit in June, demanding to proceed with the project without Ab-Gad. Recently, eight landholding companies sent a warning letter through Herzog Fox & Neeman law firm to six Ab-Gad directors, including chairman Michael Rezon, CEO Ram Rezon, and former mayor Zohar Oved, threatening personal liability claims. The landowners argue the directors approved financing commitments of up to 60 million shekels despite knowing the company could not secure funding, citing failed bank and non-bank financing attempts and a rejected valuation by the Israel Securities Authority.
Ab-Gad's legal representatives rejected all allegations, stating the contracts were with the subsidiary, not the directors personally, and described the personal lawsuit threats as a tactical move to exert pressure. The company emphasized that the original lawsuit was fully disclosed to investors and that no valid personal claims against directors exist, labeling the recent letter as harassment and intimidation.
