Delek Group Subsidiary Receives Ruling on Claim

May 9, 2007 at 12:00 AM EDT

pdf Download PDF

Tel Aviv, October 30, 2006. Delek Group (TASE: DLEKG) announced that its fully owned subsidiary, “Delek” - The Israel Fuel Corporation Ltd. (hereinafter “subsidiary”), has informed Delek Group, that they have today received a statement of claim, and a request to confirm the claim as a class action. The claim and the request to confirm the claim as a class action, is against the subsidiary and others (which are not entities tied to the Company or its subsidiary), and also against the deputy CEO of the subsidiary.

The above request and claim, was filed following an existing investigation by the Israeli police with regard to the dilution of petrol that was discovered at a number of gas stations which markets petrol of the subsidiary. According to the plaintiff’s complaint, the damage caused to them, sums to 82,800 Israeli shekels, and the aggregate damage to be claimed by a class action (if and when the request to allow the claim as a class action will be approved) is estimated by them, at 171 million Israeli shekels.

The subsidiary has passed the request and the statement of claim on to their legal counsel, which has yet to respond to the request and the claim. However, on first glance, with regard to the request and to the statement of claim, it appears that the response of the subsidiary will be the denial of all responsibility against it in the statement of claim and therefore its position is that the claim should be completely rejected as much as it relates to the subsidiary.