Elbit Medical Imaging Ltd. - Class Action.HAIFA, Israel--(BUSINESS WIRE)--Nov. 16, 1998--Elbit Medical Imaging Ltd. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : EMITF EMITF European Microsoft Information Technology Forum ) announced that it had today been served with a copy of a claim presented against it (the "Claim") and a copy of an application to approve the Claim as a class action in the name of all holders of Warrants (Series 2) issued pursuant to the Company's prospectus dated August 15, 1994 and which were exercisable, inter alia [Latin, Among other things.] A phrase used in Pleading to designate that a particular statute set out therein is only a part of the statute that is relevant to the facts of the lawsuit and not the entire statute. , for shares in the Company. The Claim was presented against Elbit Medical Imaging Ltd. ("the Company"), Elbit Ltd., Elscint Ltd. ("Elscint"), Mr. Emmanuel Gill, (Chairman of the Board of Directors, and Chief Executive Officer of Elbit Medical Imaging Ltd. and of Elscint Ltd., and Director of Elbit Ltd.), and two other directors of the Company. The plaintiffs claim that the defendants did not disclose information concerning negotiations between Elscint Ltd. (a subsidiary of the Company) for the sale of Elscint's assets to third parties; such information was published, after the warrants had expired, in a notice issued immediately following signature of a term sheet for the sale of Elscint's activities and which formed the basis for the negotiation and preparation of a final agreement that was signed recently. The grounds of claim include, inter alia, claims for breach of disclosure and reporting obligations, breach of trust, care, good faith and other obligations owed to the plaintiffs. In addition, the grounds of claim include heads of tort, breach of statutory duty, causing a breach of contract under the Obligations Ordinance A law, statute, or regulation enacted by a Municipal Corporation. An ordinance is a law passed by a municipal government. A municipality, such as a city, town, village, or borough, is a political subdivision of a state within which a municipal corporation has been , and unjust enrichment A general equitable principle that no person should be allowed to profit at another's expense without making restitution for the reasonable value of any property, services, or other benefits that have been unfairly received and retained. . A monetary remedy is requested in the sum of at least NIS Niš or Nish (both: nēsh), city (1991 pop. 175,391), SE Serbia, on the Nišava River. An important railway and industrial center, it has industries that manufacture textiles, electronics, spirits, and locomotives. 158,700 (c. $38,150) for the lead plaintiff and damages for alleged injury caused to the entire group of claimants that held Warrants (Series 2) on their expiry date expiry date expire n → date f d'expiration; (on label) → à utiliser avant ... expiry date expire n → Ablauftermin m , which they allege To state, recite, assert, or charge the existence of particular facts in a Pleading or an indictment; to make an allegation. allege v. amount to about NIS 8.15 million (c. $1,959,000) for all unexercised Warrants (Series 2) that expired. Similarly the plaintiff request that the fees of the lawyers representing the plaintiff in the class action for the proceedings in the court of first instance be fixed at a rate of no less that 20% of the amount awarded. The plaintiff also contends that there is suspicion concerning the use of inside information by certain key insiders, and its disclosure to some of the holders of the Warrants (Series 2). The Company, at this stage cannot assess the results of the action, nor its influence, if any, on their business. The Company entirely rejects the claim presented against it and will act resolutely res·o·lute adj. Firm or determined; unwavering. [Middle English, dissolved, dissolute, from Latin resol to have it dismissed. Forward looking statements with respect to the Company's business, financial condition and results of operations, in this release are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward looking statements, including, but not limited to, product demand, pricing, market acceptance, changing economic conditions, risks in product and technology development, the effect of the Company's accounting policies as well as certain other risk factors which are detailed from time to time in the Company's SEC filings. |
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