The Tel Aviv District Labor Court today ruled that three top CA Israel Ltd. managers will leave their posts at the end of the month. CA Israel CEO Aryeh Ofner and deputy CEO Danny Shemesh will be eligible for severance compensation as stipulated in their personal contracts.
The court ruled that Ofner and Shemesh can sue CA Inc. (NYSE: CA) over their dismissal, as the pre-dismissal hearing was cancelled. The court ruled that they did not forego their rights to sue the company and argue bad faith on the part of the company in the dismissals. Ofner and Shemesh plan to sue the company over the incident, but not over the decision to fire them.
In the case of CA Israel VP Finance Chaim Gitler, the court yesterday issued an injunction against his dismissal until the court hears the case tomorrow.
Aides of Ofner and Shemesh said in response that both executives had said that it was possible to consensually terminate their employment, and the entire process and gross accusations were intended for an extraneous and completely different purpose. They added that both Ofner and Shemesh reserved the right to defend their reputations, which CA Inc. had trampled, and that they were considering their options.
CA Inc. initiated its investigation into CA Israel and its managers in July. The reason for the investigation and the actions taken was CA Israel's management's behavior vis-a-vis the Ministry of Defense, the largest customer of CA Israel and one of CA Inc.'s most important customers. 18 months ago, "Globes" reported that the Ministry of Defense had frozen contracts with CA Inc. worth tens of millions of dollars because they did not comply with the terms of US military aid to Israel.
Published by Globes [online], Israel business news - www.globes-online.com - on December 15, 2008
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