Former MK Avihai Kara Leads Bill to Protect Small Businesses from Frivolous Class Actions

Former Knesset member Avihai Kara is spearheading a widely supported bill in the Knesset aimed at shielding small businesses from baseless class action lawsuits that he says threaten their survival. The legislation, promoted during the parliamentary recess with backing from both coalition and opposition members, seeks to curb what Kara describes as an exploitative legal practice used by some lawyers to extract large settlements through frivolous claims. Kara told Channel 7 that these lawsuits, often involving millions of shekels over minor or nonexistent issues, have become a "profitable business" for certain attorneys, conducted openly in courts under judges' watch.

Kara revealed that during the bill's advancement, he encountered cases illustrating the problem's scope, including dozens of class actions filed in the name of a woman unaware of the lawsuits. He also cited research showing Israel's class action filings far exceed those in Canada, with 90 percent of 2013 cases deemed inappropriate or unfit for court. The proposed law would require plaintiffs to first notify businesses and allow them to fix alleged violations before filing class actions. If corrected, the business would only pay a maximum of 2,000 shekels as compensation to the claimant, avoiding costly litigation.

Kara expressed gratitude to coalition and opposition lawmakers supporting the bill, including Justice Minister Yariv Levin, Constitution Committee Chair Simcha Rothman, and MKs Yair Lapid, Merav Ben Ari, and Ofir Katz. He also recounted facing threats, false accusations, and fake accounts during the five years of promoting the legislation, calling on the Israel Police and Bar Association to hold those responsible accountable for harming Israeli citizens.