Shareholder Sues Israel Corp Due To Bad Better Place Investment
Approximately a year has passed since Better Place went to a better place in bankruptcy, but the fight to recover at least part of the money continues.
Last month, a lawsuit from a shareholder was filed with the Tel Aviv District Court against Israel Corporation, which was the main investor in Better Place (~ $293 million from about $800 million). The suit alleges that Israel Corp could have saved $33.5 million by not making its last investment before the Better Place collapse.
“The motion for the disclosure of documents filed by Israel Corp. shareholders, Boaz Yifat, CPA, asks the court to order the company to disclose all its investment documents in Better Place, all Better Place reports and data in Israel Corp.’s position before the decision to invest $33.5 million in the venture, and all the minutes and decisions by Israel Corp.’s board of directors, audit committee, and management related to this investment.”
If Israel Corp. was aware of Better Place’s shape, this could mean serious trouble for management.
“The petition states that if Israel Corp. was unaware of Better Place’s shape at the time of the second tranche, the petitioner wants to know whether the company was misled, and if Israel Corp. knew that it could not save Better Place, why did it make the investment, “throwing good money after bad.”