Civil Case (Tel Aviv) 262-04-17 Toiga Online Ltd. v. Mizrahi Tefahot Bank Ltd.

Judgment

Prior to two lawsuits against Mizrahi-Tefahot Bank in a tax appeal (hereinafter: the "Bank").  The first claim is the claim of the companies Toiga Online in a tax appeal and Toiga Media in a tax appeal (hereinafter: "the plaintiffs" or "Toiga Online" and "Toiga Media" respectively), which revolved around a notice dated March 29, 2017 regarding the closure of the plaintiffs' accounts held at the bank and their numbers (respectively): 460987 opened on August 12, 2009 and 438590 which was opened on November 27, 2008.  The second claim is the claim of Mr. Toledano Haim (hereinafter: "Toledano") and Lihat Holdings in a tax appeal (hereinafter: "Licht"), which revolved around a notice dated March 20, 2017 regarding the closure of their accounts held at the Bank and their numbers (respectively): 442253 which was opened on 5/8/07 and 441982 which was opened in 2008.

(All of the plaintiffs in the two suits hereinafter: "the plaintiffs").

As part of their claims, which were heard jointly, the plaintiffs asked the court to determine that the decisions regarding the closure of their accounts were unreasonable, contrary to the law, and therefore null and void.  The plaintiffs also requested that an order be issued preventing the closure of the accounts or the imposition of sweeping restrictions on the activity in the accounts, and that indications be given as to the manner in which the accounts will continue to operate from now on.

Introduction;

1. Mizrahi Tefahot Bank, the defendant in both suits, is a banking corporation operating in accordance with the Banking Law (Licensing), 5741-1981 (hereinafter: the "Banking Licensing Law").
2. Plaintiff No. 1 in Civil Case 262-04-17 Toiga Online is a tax appeal company incorporated in Israel and whose shareholder is a company called Paragon EX Limited (hereinafter: "Paragon EX Limited"), which is a foreign company incorporated in the Virgin Islands and whose place of residence is in the Islands of Maine. The directors of Twiga Online, on the relevant dates of the lawsuit, were: Mr. Toledano Haim - an Israeli resident and citizen - who is, as aforesaid, plaintiff No. 1 in the second lawsuit, and Mr. Floyd Robert Cameron, whose place of residence is in the British Virgin Islands.

Plaintiff No. 2 in Civil Case 262-04-17 - Toiga Media is a tax appeal company that was also incorporated in Israel, whose shares are also fully held by Paragon EX and in which Mr. Toledano Haim, on the relevant dates of the lawsuit, served as a director.