Two lawsuits were filed today with the Tel Aviv District Court, with requests to recognize them as class-action suits in the amount of NIS 32 billion each, against bottled water companies Eden Springs Ltd. (Maayanot Eden) (TASE: MEYD) and Neviot - Nature of Galilee Ltd. (TASE: NVIO). The lawsuits claim that the companies and their officers are concealing from the public that the water they sell in 19.8-liter plastic containers damage the health and could cause cancer.
The petitioners claim that the containers contain phenol at levels that affect the health. They claim, "The respondents market water that is unfit for use, and sell it to the public as healthy water, fit for consumption, when in practice the water jeopardizes the health of the people who drink it."
The petitioners estimate that eight million people are affected every year by the actions of the two mineral water companies.
The petitioners claim, "According to an opinion written at the request of the petitioners, and professional literature ffinds that the toxicity of the substance found in the containers marketed by Eden Springs and Neviot causes, among other things, deviations in the sexual development of men, early menopause in women, neuro-behavioral problems such as hyperactivity and attention disorders, obesity, type 2 diabetes, a drop in sperm count, and certain types of cancer related to the hormonal system, such as prostrate cancer and cancer in the respiratory system."
Eden Springs said in response, "We reject the baseless claims made by the petitioners, which are based on groundless assumptions and claims that have no professional basis. The company states unequivocally that all Eden Springs products are high quality and completely safe."
Eden Springs added, "All products comply with the relevant standards, they are packaged and marketed in container that comply with all standards, on the basis of accepted standards of leading companies in the Israel and the world."
Neviot said, "Neviot rejects outright the claims in this baseless lawsuit. Our examination of the statement of claim has found many errors in the tests, methods for calculating the data, and presenting them. The lawsuit is therefore baseless and professionally groundless. Neviot complies with all standards, including the standards mentioned in the statement of claim. The company emphasizes that there is no problem or health threat. This fact is supported by Israeli and international experts in the field."
Eden Spring's share price fell 1.4% today to NIS 10, while Neviot's share was unchanged at NIS 17.27.
Published by Globes [online], Israel business news - www.globes-online.com - on June 30, 2010
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