NEW YORK, June 30, 2017 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against B Communications Ltd. ("B Communications" or the "Company") (NASDAQ: BCOM) and certain of its officers, on behalf of shareholders who purchased B Communications securities between November 7, 2013 and June 19, 2017, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: http://www.bgandg.com/bcom.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
B Communications Ltd provides various communications services for business and private customers in Israel and is a subsidiary of Internet Gold–Golden Lines, a subsidiary of Eurocom Communications Ltd. ("Eurocom"), owned by Shaul Elovitch ("Elovitch").
At all relevant times, Bezeq The Israel Telecommunication Corporation Limited ("Bezeq") was as a subsidiary of B Communications. On or around June 24, 2015, Bezeq finalized a merger with its subsidiary D.B.S., Satellite Services (1998) Ltd. ("DBS"), also known by the name "YES", a satellite television operator (the "Bezeq-YES Merger"). Prior to the merger, Bezeq held a 49.8% stake in YES, while Eurocom held a 50.2% stake in the YES. Pursuant to the merger, Bezeq paid Eurocom NIS 680 million to acquire its holdings in YES.
Through Elovitch's ownership of Eurocom, he exercised control over Eurocom, B Communications, and Bezeq, and served at all relevant times as the Chairman of the Board of Directors at each company.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding its business, operational and compliance policies and specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Elovitch had engaged in illegal conduct in connection with the Bezeq-YES Merger; (2) discovery of the foregoing conduct would subject B Communications and/or Bezeq to heightened regulatory scrutiny and potential criminal sanctions; and (3) consequently, B Communications' public statements were materially false and misleading at all relevant times.
On June 20, 2017, The Times of Israel revealed that the Israel Securities Authority ("ISA") raided the offices of B Communications' subsidiary, Bezeq The Israel Telecommunication Corporation Ltd. ("Bezeq"), and detained Shaul Elovitch, Bezeq's chairman and majority shareholder. Bezeq disclosed that "the ISA has informed the company that the investigation deals with suspicions of violations of the securities law and the penal code relating to transactions connected to the controlling shareholder." The Israeli publication Globes also reported that the ISA is investigating the Bezeq-Yes Merger and payments the unit made to Eurocom under pressure from Elovitch. Following this news, B Communications shares dropped $1.00 per share or over 4% from its previous closing price to close at $20.50 per share on June 20, 2017.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm's site: http://www.bgandg.com/bcom or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in B Communications you have until August 28, 2017 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | firstname.lastname@example.org
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