0
- The impression is that although there is a substantial security breach in the software, as indicated by the expert's testimony, this is not a vulnerability that an ordinary user can discover while wandering around the site, and a person with technical knowledge may find it difficult to discover it (when it took the expert about two and a half to three hours to discover the vulnerability with an administrator password). This is also a matter that is predicted to be simple to solve.
Werber's claim regarding a malfunction in the display for marketers
- There is no dispute that shortly after the launch of the venture, a malfunction was discovered in the "marketing tree" of the lecturers and marketers, so that the number of customers recruited included customers who did not complete the registration process (for whom there is no entitlement to a commission) and not only customers who completed the registration on the site as subscribers (payers). As can be seen from the expert's opinion, this was not a malfunction in the system that was reflected in the calculation of fees for the purpose of payment, but rather a display that misled the lecturers into thinking that they had recruited more subscribers than they had actually raised.
- This fault was significantly reflected in Werber's evidentiary material. Omri and Doron testified to this at length as well, and I do not find it possible to accept the defendants' argument in the summaries that their testimony was unreliable due to the connection with Werber. Doron testified in his affidavit, inter alia, about his monitoring of the registrants in the "marketing tree" under him at various levels, and that he presented the data to his customers and followers as a business potential and shared it with Yonit, as well as that the data did not work out for him during the month of May 2018 and when he did not receive satisfactory answers within a short time he lost faith in the system, when only at the end of June upon receipt of the payment did he discover that the commission was one-third of the amount he thought he was entitled to according to the (misleading) view of the registrants. So - he felt cheated and distrustful, and the answers he received from Keren were not satisfactory and reliable in his eyes. He noted, however, that he kept the subscription in the system until February 2020 as long as the amount of commissions he received was higher than the monthly payment for the subscription fee. Omri testified in his affidavit, among other things, that he did not feel comfortable with the numbers that Shmulik presented from day one and that the number of registrants was lower than expected. He expected 100 registrants and realized that the reality was very far from Shmulik's estimate that it would be easy for anyone to bring in seven people. He also testified that when Shmulik explained in a webinar in June that the figure presented to marketers in the marketing tree for which he was entitled to a commission was incorrect, he was surprised and that this was a very important statistic on the basis of which he decided how and at what cost to finance advertising for the system.
- The evidence indicates that this malfunction was dealt with after it was discovered, and at a meeting of the board of directors on June 11, 2018, it was decided how to deal with the malfunction (p. 515 of the Werber evidence), which was dealt with and repaired.
Werber's claim of malfunctions and complaints upon the beginning of the activity
- In their affidavits, Werber also describes various technical glitches that began to appear "almost immediately" after the launch (most of which the court-appointed expert was not asked to address): that content disappeared from the site; problems in the mailing system (mailchimp) that necessitated replacing it with another mailing system (which Tzachi and Yonit paid for out of their own pockets); problems with the clearing company and the clearing sheet; The absence of a feedback system and a malfunction that made it possible to view all the content on the site for free (paragraph 98 of Yonit's affidavit; paragraph 96 of Tzachi's affidavit). They also specify that customer malfunctions that the site does not give access to continue to accumulate; of customers who register and do not receive access details or those who receive messages whose access has been blocked (section 100 of Yonit's affidavit; section 98 of Tzachi's affidavit).
- Referring to these malfunctions, Shmulik noted that these were malfunctions "that are routine and were easily fixed. None of these problems are unusual... It was precisely my job to stabilize and develop the technological system" (paragraph 89 of the supplementary affidavit). In other words, Shmulik does not dispute that these mishaps occurred.
- Later on, Werber refers to various complaints from customers regarding problems with registration, the inability to access the site after registration and the inability to reset a password, credit card charges even for those who have disconnected from the service, the inability to watch the course again after viewing it has ended (paragraph 104 of the June affidavit; paragraph 102 of Tzachi's affidavit); As well as complaints in the lecturers' sector - of the problem of entering courses that appear in the system (paragraph 105 of Yonit's affidavit; section 103 of Tzachi's affidavit).
In response to these, Shmulik notes that "all the problems we received were addressed" (paragraph 91 of the supplementary affidavit). In other words, Shmulik does not dispute these problems either.