Legal Updates

The existence of a public wrong must be proved when applying for approval of a class action

October 22, 2014
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In an advertisement for the purchase of a car, a particularly low price was noted relative to the price list of the vehicle. In a conversation with the business, it turned out that there had been a typo at the published price. As a result of the misstatement, a request to approve a class action was filed on the grounds that it was a sales exercise intended to cause potential buyers to contact the dealer for a transaction. The business, for its part, argued that the threshold conditions under the Class Action Law were not met for approval as a class action and that this is a point-of-fact error in good faith. The court ruled that the objectives of the Class Actions Law include an incentive for a representative of the group to correct wrongs against him and against the consumers when these are being done. In our case, the request of the potential customer did not at all show the existence of an injustice, even without examining whether it met the threshold conditions of the Class Actions Law and therefore there is no basis for the claim. The court charged the class action plaintiff with legal expenses.
For the full disclosure: The defendant in the class action that was deleted on the recommendation of the court, while charging the plaintiff with the expenses represented attorneys Doron Afik and Shira Porat of Afik & Co..

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