NIS 239m class action suit request filed against Pele-Phone

The plaintiff: Pele-Phone acted in bad faith when it signed Russian-speaking new immigrants for its “Pele-Phone Olim” plan by failing to include a price list in the contract.

A request for a NIS 239 million class action suit has been filed with the Tel Aviv District Court against Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ) subsidiary Pele-Phone Communications Ltd.. The lawsuit was filed by new immigrants from Russia who claim that the company’s “Pele-Phone Olim” (Pele-Phone for new immigrants) violated the Consumer Protection Law, and was in breach of the obligation of good faith and in breach of contract.

The plaintiff, Igor Golod, claims that Pele-Phone acted in bad faith and in an unacceptable way when it signed Russian-speaking new immigrants for its “Pele-Phone Olim” plan by failing to include a price list in the contract. He also alleges that when Pele-Phone was forced to provide a price list, the company provided one that was invalid.

The plaintiff says that Pele-Phone violated the contract when it billed subscribers for air-time on the basis of the minimum 60-second unit instead of the 12-second unit mandated under the terms of the company’s operating license.

Published by Globes [online], Israel business news - www.globes.co.il - on June 26, 2007

© Copyright of Globes Publisher Itonut (1983) Ltd. 2007

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