The Tel Aviv District Court rejected the petition filed by Nadav Shoval, founder Open webTo cancel the company’s board of directors’ decision to dismiss him. Shuval claimed that the directors were removed on his behalf and replaced by directors on behalf of the company’s controlling shareholders, the venture capital funds Insight Partners and Georgian, and that his removal was therefore unlawful.
Shuval, who founded OpenWeb, a private unicorn, tried to prove in legal action he filed last month that his firing was illegal and would have hurt the company, among other things because he enjoyed the support of its clients, major news sites like Fox. News and Popular Science.
In denying Shoval’s petition, Judge Ariel Zimmerman wrote: “The petition is improperly filed, complains of infringement of non-existent rights, and seeks damages that have no justification. The OpenWeb Board of Directors has repeatedly determined that Shoval should not do so.” Continue to serve as CEO. Shoval has no birthright to serve as CEO: he gave up his rights, as it were, so that investors could pump large sums of money into the company and, according to the investors, into Shoval’s pocket. If he were not an employee of the company, he would appear to have lost his right to appoint directors on his behalf, which would not have helped him anyway.
“Given that the petitioner has no right to retain the position of CEO, and given the time that has elapsed between the dismissal and the filing of the petition, the displeasure it will cause to the company, the lack of confidence of the directors in the petitioner, who so severely disparages them in his petition, and choosing to conceal a very important document from Court while filing a petition for From one side Injunction, the petition must be dismissed.”
Zimmerman ruled that Shuval will bear legal costs of NIS 50,000.
Nadav Shoval said in a statement: “We are studying the ruling and examining all legal options available to us. It must be emphasized that this is a temporary ruling, and that the statement of claim against the board members is still pending, and I intend to move forward with it.”
Published by Globes, Israel Business News – en.globes.co.il – on November 13, 2024.
© Copyright Globes Publisher Itonut (1983) Ltd., 2024.
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