Dalk Motors Faces Class Action Over Sharp Write-Down of Hailo Chip Investment

Dalk Motors, controlled by Gil Agmon, is embroiled in a significant legal and financial crisis following a failed high-tech investment. A class action lawsuit was filed on Tuesday, accusing the company of misleading investors by issuing contradictory reports within two and a half months about the true value of its stake in Israeli chipmaker Hailo.

On March 31, 2026, Dalk Motors reported in its annual financial statement that its 12.1% holding in Hailo was stable, valued at approximately $170 million (197 million shekels), even if a planned merger with a SPAC did not proceed. However, on June 8, just 69 days later, the company disclosed the merger talks had collapsed, forcing it to write down most of its investment’s value. This reversal caused a sharp 5% drop in Dalk Motors’ share price and sparked the lawsuit.

The lawsuit highlights a critical discrepancy: while Dalk Motors assured investors of Hailo’s stable valuation, it simultaneously acknowledged that the merger was crucial for Hailo’s urgent fundraising and survival. Hailo, once a promising AI chip startup valued at $1.2 billion in 2024, has since faced a severe crisis, including layoffs of about half its workforce (110 employees) and a merger valuation below $500 million.

The plaintiff, who bought shares based on the optimistic March report and held them through the June decline, seeks compensation on behalf of all shareholders who purchased during this period. Although the plaintiff’s personal loss is modest (133 shekels), an expert economic opinion estimates total investor damages at around 9.4 million shekels. The court must now determine whether Dalk Motors concealed critical information or if the valuation drop was an unforeseeable event. Dalk Motors has not responded to requests for comment.