In this legal update we review the main points from the District Court in Lod decision in the Maariv matter. In the decision, the Court approved a settlement agreement in a derivative suit concerning the investments of the Discount Investment Corporation for the acquisition of control of the Maariv newspaper.
In the decision, the District Court (the Honorable Justice O. Grosskopf) established that it is appropriate to acknowledge the company’s board of directors discretion, which believed that entering the settlement agreement with the company is to the company’s benefit. The Court further established that doing so is appropriate even when the derivative plaintiffs’ attorney in the derivative suit believes otherwise.
As we have done in the past, at the end of the review we note a number of points to emphasize which arise from the decision.
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