B Communications Ltd (NASDAQ:BCOM) Investor Securities Class Action Lawsuit 06/29/2017

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Company Name(s): 
B Communications
Case Name: 
B Communications Shareholder Class Action Lawsuit 06/29/2017
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
NASDAQ: BCOM
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
06/29/2017
Class Period Begin: 
11/07/2013
Class Period End: 
06/19/2017
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
08/28/2017
Date Settled: 
04/10/2020
Settlement Amount: 
$1,200,000
Deadline to Participate in Settlement: 
08/17/2020
Filed Complaint: 
Settlement Notice: 
Settlement Proof: 
Summary: 

April 10, 2020 - The court preliminarily approved the settlement.

March 03, 2020 - Parties filed a stipulation of settlement.

June 29, 2017 (Shareholders Foundation) - An investor in shares of B Communications Ltd (NASDAQ:BCOM) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by B Communications Ltd in connection with certain allegedly false and misleading statements made between November 7, 2013 and June 19, 2017.

On or around June 24, 2015, Bezeq The Israel Telecommunication Corporation Limited completed a merger with its subsidiary D.B.S., Satellite Services (1998) Ltd. (“DBS”), more commonly known by its trade name “YES”, a satellite television operator.
Prior to the merger, Bezeq The Israel Telecommunication Corporation Limited held a 49.8% stake in YES, while Eurocom held a 50.2% stake in the YES.

Pursuant to the merger, Bezeq The Israel Telecommunication Corporation Limited paid Eurocom NIS 680 million to acquire its holdings in YES.

Through his ownership of Eurocom, at all relevant times Elovitch has exercised control over Eurocom, B Communications, and Bezeq The Israel Telecommunication Corporation Limited, and has served at all relevant times as the Chairman of the Board of Directors at each of the three companies.

According to the complaint the plaintiff alleges on behalf of purchasers of B Communications Ltd (NASDAQ:BCOM) common shares between November 7, 2013 and June 19, 2017, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between November 7, 2013 and June 19, 2017, the defendants made false and/or misleading statements and/or failed to disclose that Elovitch had engaged in illegal conduct in connection with the Bezeq-YES Merger, that discovery of the foregoing conduct would subject B Communications and/or Bezeq to heightened regulatory scrutiny and potential criminal sanctions, and that as a result of the foregoing, B Communications’ public statements were materially false and misleading at all relevant times.

Israel based B Communications Ltd. is focused on the telecommunications industry. The Company's principal asset is its ownership interest in Bezeq The Israel Telecommunications Corp. Ltd. (Bezeq), a provider of communications services in Israel.

On June 20, 2017, The Times of Israel reported that the Israel Securities Authority (“ISA”) raided the offices of B Communications Ltd’s subsidiary, Bezeq The Israel Telecommunication Corporation Ltd. (“Bezeq”), and detained Bezeq’s controlling shareholder for questioning. Bezeq disclosed that “the ISA has informed the company that the investigation deals with suspicions of violations of the securities law and the penal code relating to transactions connected to the controlling shareholder.”

Shares of B Communications Ltd (NASDAQ:BCOM) declined to as low as $17.16 per share on June 29, 2017.