C.2. The Plaintiff's Claims to the Body of the Claim
- In the statement of claim and summaries on behalf of the plaintiff, it was claimed that the defendants Shemen, Ashkenazi and Levy reported three false reports according to which significant signs of oil were found in the "Yam 3" well (reports from September 8, 2023, September 16, 2013, and September 22, 2013). It was argued that prior to the publication of the reports, the defendants knew that there were serious problems in the drilling, which indicated that there was no chance of economic production of oil from the drilling (alongside this statement, it was claimed in some of the sections of the statement of claim that the severe problems significantly reduced the chances of finding oil, see paragraphs 22 and 28 of the statement of claim). The defendants hid the serious problems in the "Yam 3" drilling, with the aim of spurring investors to invest in the company's securities and raise funds fraudulently.
- The claims in the statement of claim and in the summaries were concentrated in a report dated September 8, 2013, which was published after the electrical log tests carried out in the "Yam 3" well. It was argued that already on September 7, 2013, after the defendants received the results of the electrical log tests performed in the drilling, they were aware of serious deviations from the expected deviations in relation to the level of rock porosity and conductivity. It was claimed that this was material information that the company should have reported.
The plaintiff testified that on September 10, 2013, following the company's report of September 8, 2013, to which he was exposed by the press, he purchased the company's shares in the amount of ILS 260,000. For this purpose, on September 10, 2013, he sold shares of Isramco. It was argued that this proximity of time indicates a clear causal connection between Shemen's reporting and his purchase of the shares. In his affidavit, the plaintiff claimed that if he had been exposed to what was said by the board of directors of Shemen on September 7, 2013, he would not have purchased the shares (paragraph 6 of the affidavit).