Family Dispute Erupts Over Control of Israeli Security Equipment Firm Silynxcom
תומצת מתוך Calcalist על ידי baba
Three elder siblings of Silynxcom founders sued their younger sister and her husband, the CEO, alleging they were excluded from their inheritance shares in the security equipment firm. The dispute involves alleged unauthorized share transfers and dilution before the company's 2023 IPO. The case moved from family to district court due to its corporate nature.
הידיעה ב-6 שורות · תקציר של baba
- Three elder siblings sued their younger sister and her husband over inheritance shares in Silynxcom.
- They claim the sister and CEO husband diluted their shares and transferred control without consent.
- Silynxcom is a publicly traded Israeli security equipment firm valued at $6.5 million.
- The dispute centers on shares inherited from their late parents and alleged unauthorized 'Change of Control' documents.
- The case was moved from family court to district court due to its primarily corporate nature.
- The CEO claims he paid for the shares through financial arrangements and salary waivers totaling 2.2 million shekels.
A significant family conflict has emerged among the founding siblings of Silynxcom, an Israeli security equipment company specializing in tactical in-ear communication devices. The three elder siblings, Nir, Ran, and Smadar Nir, have filed a lawsuit against their younger sister, Gal Nir, and her husband Nir Klein, who is also the CEO and holds 41.5% of Silynxcom's shares. The lawsuit, submitted last week to the Central District Court in Lod, claims that Gal and Klein acted behind the elder siblings' backs to nearly exclude them from their inheritance shares in the parent company Silynx, which was passed down from their late parents.
Silynxcom, publicly traded on the New York Stock Exchange since October 2023 with a valuation of $6.5 million, sells its tactical communication equipment to military and security agencies in about 40 countries. The company was originally founded as SOS in 2005 by the late Adi and Ruth Nir and later renamed Silynx. In 2008, the company raised capital from the Shamrock investment fund, which acquired 70% of the shares, leaving 30% with the Nirs. Klein, married to Gal Nir, later purchased Shamrock's shares for $250,000, according to the elder siblings.
The lawsuit alleges that the 30% stake inherited by the three siblings was diluted to 6% before the IPO, while Klein's share rose to 87%. Ran Nir claims his inherited rights were converted without his knowledge or consent, reducing his stake from 24.5% to 1.47%. The complaint also states that in July 2017, Gal Nir purportedly signed "Change of Control" documents on behalf of their mother to transfer control to Klein without informing the other siblings, violating a status quo agreement.
Klein responded that his increased shareholding was paid for in 2017, including Gal's portion, through financial arrangements such as bank deposits as security for company debt repayment, loan deferrals, salary waivers totaling approximately 2.2 million shekels over several years. Although this is a family dispute, the case was moved from the Petah Tikva Family Court to the Central District Court after a judge ruled the matter was primarily corporate rather than familial. The elder siblings are now pursuing their claims in the district court to clarify the legality of the alleged actions and recover their rightful shares.
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