Israeli Operator Hit with Lawsuit

Cellcom Israel says that it has been served with a lawsuit and a request for certification of the lawsuit as a class action, by a plaintiff who claims to be a subscriber of the Company. The plaintiff claims that the Company unlawfully collected Value Added Tax from its subscribers who are residents of the city of Eilat in Israel and that the Company misled and failed to disclose same.

If the lawsuit is certified as a class action, the amount claimed is estimated by the plaintiff to be approximately NIS 33 (US$7.6) million, calculated by multiplying an alleged damage of NIS 6,600 (US$1,570) per subscriber by the number of the subscribers allegedly damaged, estimated by the plaintiff to be at least 5,000. The plaintiff is maintaining the right to increase the sum after receiving further information.

At this preliminary stage, the Company is unable to assess the lawsuit's chances of success.

It is noted that on May 2001 a lawsuit and a request for certification of the lawsuit as a class action, alleging, inter alia, that the Company unlawfully collected Value Added Taxes from its subscribers who were residents of or while staying at the city of Eilat in Israel, were denied with the consent of the plaintiffs."

Posted to the site on 1st March 2007