Ex-yes CEO Sues Bezeq for $1 Million in Legal Fees

Ron Eilon, who served as the CEO of the telecommunications company yes from 2006 to 2018, has filed a lawsuit against Bezeq, demanding approximately NIS 3.8 million (about $1 million) in compensation. Eilon claims Bezeq is refusing to reimburse him for his reasonable legal expenses incurred during a criminal proceeding that was initiated against him. The charges stemmed from a Bezeq-related case where Eilon was accused of attempting to influence the cash flow of yes, a Bezeq subsidiary, to benefit Eurocom, a company associated with Shaul Alofey. The investigation, hearing, and legal proceedings spanned eight years and concluded with the indictment against him being dismissed in April 2025. Eilon, represented by attorneys Yaron Kostelitz and Amit Shalom, asserts that despite Bezeq providing him with a letter of commitment for indemnification, the company is refusing to cover the remaining reasonable litigation costs, estimated at NIS 3.3 million (including VAT and interest). The lawsuit argues that the extensive eight-year legal process, involving over 10,000 hours of work by his legal team, justified the fees charged. Eilon is also seeking reimbursement for expenses paid to another firm that handled a derivative lawsuit related to the criminal proceedings. Bezeq has reportedly covered only a partial amount of Eilon's legal fees to date, totaling approximately NIS 2.4 million, and is being asked to pay the remaining NIS 2.5 million for both the criminal and civil proceedings. Separately, the lawsuit also addresses a performance bonus for 2018, amounting to NIS 306,000, which Eilon claims Bezeq delayed due to the investigation. While Bezeq agreed to pay the principal amount after the legal proceedings concluded in 2025, they allegedly conditioned this on Eilon waiving accrued interest and linkage differences since 2019, which now total approximately NIS 428,000. Bezeq has yet to file a defense statement.