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Commitments, Contingencies and Legal Proceedings
9 Months Ended
Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments, Contingencies and Legal Proceedings

Note 7. Commitments, contingencies and legal proceedings

 

On August 7, 2019, Viewbix Israel was named as a co-defendant in a civil lawsuit filed with the Jerusalem District Court by three Shareholders of Viewbix Israel (the “Shareholders”), alleging that they were entitled to receive certain preferred shares in Viewbix Israel, pursuant to a certain 2007 loan agreement by and between Viewbix Israel and the petitioning Shareholders, following the sale of Viewbix Israel shares to Algomizer (the “Conversion”). The Shareholders have sought declaratory recourse from the Court, through which the Shareholders demand, inter alia, shares in Algomizer on a post-Conversion basis or a form of alternative compensation. In the opinion of the Company’s management, the plaintiffs’ claims are based on incorrect assumptions and deals with the distribution of shares between the plaintiffs and the other former stockholders of the Company before the Recapitalization Transaction, resulting in a consideration coming to the applicants following the Recapitalization Transaction. Therefore, management of the Company and its legal advisers believe the any material exposure to the Company is remote.

  

In April 2017, a lawsuit was filed with the Tel Aviv District Court (the “District Court”) by Mr. Wayn claiming certain damages to the total amount of $100,000, under the assertion of wrongful dismissal by the Company and Emerald Israel. The Registrant believes these claims to be unsubstantiated and wholly without merit and intends to defend itself against these claims. Following the Liquidation Order, as defined below, the District Court dismiss the case against the Registrant.

 

In December 2017, a liquidation request was filed with the District Court by a group of former employees of Emerald Israel, under the assertion of delay of pay and insolvency. On December 20, 2017, at a hearing before the court, it was ordered that the Emerald Israel shall settle its pension debts to the former employees under applicable Israeli law within 21 days and settle its other debts to them in 60 days, the failure of which would result in a winding-up order (the equivalent of a liquidation) could be given. On May 2, 2018, the District Court gave an order to liquidate Emerald Israel (“Liquidation Order”) and appointed a special executor for this purpose. The amounts being claimed by the former employees was less than $96,000 and will be awarded by the special executor to the extent that assets of Emerald Israel can be sold. The Company has not made a provision for any payments in respect of the above-mentioned claim, as any payments awarded by the Trustee to the former employees of Emerald Israel will be paid of the assets in Emerald Israel.