Starcom has provided an update on a suit that was filed by Top-Alpha Capital Ltd against CEO Avi Hartmann, COO Doron Kedem and the company and its subsidiaries, as announced on Dec. 3, 2014.
The Company announced at the time that it considered that the claim was unlikely to impact the Company in any way because it had received expert legal advice that the suit was based on very weak foundations and contentions.
It further noted that Hartmann and Kedem had confirmed, pursuant to an agreement dated 19 November 2012 between Top Alpha and Hartmann and Kedem, that they would personally discharge any liability or obligation falling upon members of the Starcom Group.
"A recent court judgement in Israel has concluded that there may be a claim (though unquantified) against the Company's principal operating subsidiary in Israel and Messrs Hartmann and Kedem, in apparent ignorance of the agreement dated 19 November 2012. The earlier claim was for £950,000 at current exchange rates.
"The Company's legal advisors have re-confirmed their previous advice and their strong view is that the substantive part of the court judgement is without merit and will be overturned in a higher court.
"The court's decision has therefore been appealed. The Directors consider it likely that this process will take many months if not years to be resolved."