Banking Disputes

  • S. Horowitz & Co. has long been recognised by the market as Israel's leading practice for banking and finance litigation, regulatory disputes and regulatory investigations. We are one of the few firms in Israel that can offer an integrated, multi-disciplinary service that provides dispute resolution expertise across the full spectrum of the banking and financial services industry.

     

    Our clients include Israel's leading banks and financial institutions, global banking institutions, investment banks, hedge funds, fund managers, credit card companies, provident funds, brokers, insurers and other participants in the banking and financial services sector.

     

    We have significant practical experience advising on disputes arising from the recent global financial crisis as well as class actions, non-performing loans, banking and securities fraud, allegations of money laundering, disputes involving derivatives and fund management, freeze orders, matters relating to reputational and risk management issues, regulatory investigations and disciplinary proceedings. 

     

    Our team regularly works closely with foreign law firms and in-house counsel on major disputes and high profile investigations that span multiple jurisdictions.

    • Representing a syndicate of lenders, comprising the seven largest banks in Israel, in a claim for the repayment of a NIS 3 billion (USD 750 million) loan advanced to Zeevi Management and Financing Ltd. The proceeds of the loan were used to purchase approximately 20% of the shares of Bezeq, the country’s largest telecommunications company
    • Representing the Israeli Association of Banks in its successful appeal before the Israeli Supreme Court to set aside a District Court judgment that had held a credit line granted by a bank to its customers was an asset capable of being attached by third party creditors
    • Representing Bank Mizrahi-Tefahot in several highly-complex cases brought against IDB Development Corp., including a request to the courts for the enforced settlement of a NIS 6 billion debt (approximately USD 1.5 billion) owed to banks and bondholders, (of which the Bank was one of the major creditors)
    • Representing Bank Hapoalim (Switzerland) Ltd. in its defence of a multi-million dollar claim for damages filed by clients of the bank relating to investments in securities of the Lehman Brothers investment bank following the collapse of the bank in 2008.  The District Court approved our firm's application for in limine dismissal of the claim on the ground of a foreign jurisdiction clause between the parties directing the plaintiff to file the claim in Switzerland.  The firm also acted for the Bank in Supreme Court proceedings in which the judgment of the District Court was upheld
    • Representing Israel Discount Bank in a petition filed by Bank Yahav relating to the award to Israel Discount Bank of a government tender worth more than NIS 1 billion (approximately USD 250 million) regarding the management of personal loans to public sector employees
    • Representing Bank Hapoalim in a large number of proceedings for the recovery of loans in excess of NIS 1 billion (approximately USD 250 million) owed by the Kachtan Group.  We also represented the Bank in the negotiation and finalisation of a settlement agreement with regard to these proceedings
    • Representing Expert Financial Products Ltd. and its officers in a class action for compensation in excess of USD 100 million which was brought in connection with the issue of a promissory note secured by funds deposited with a subsidiary of Lehman Brothers.  The plaintiffs claimed that material information as to the imminent collapse of Lehman Brothers had been withheld from them
    • Representing Bank Hapoalim in a class action brought against it and Israel Petrochemicals Enterprises by bondholders of Israel Petrochemicals Enterprises (IPE).  The action alleges collusion between the Bank and IPE concerning the distribution of funds received by IPE from the sale of certain assets, and includes petitions for various remedies including claims for damages in the amount of NIS 120 million (approximately USD 30 million)
    • Representing Bank Mizrahi-Tefahot in its defense of a claim for damages of NIS 82 million (approximately USD 21 million), brought by a client holding an options trading account at a branch of the Bank.  The plaintiff accused the Bank of having unlawfully blocked and netted out its trading account
    • Representing Bank Igud in claims against certain of its customers for the recovery of sums exceeding USD 100 million arising from the improper exploitation by these customers of an error in the bank’s computerised account management systems
    • Representing Bank Igud and its chairman in a claim, commenced by Shlomo Eliyahu against them and other controlling shareholders of the bank, relating to the process adopted for the appointment of the bank's CEO.  The District Court of Tel Aviv gave a judgment in favor of Bank Igud and the chairman, ruling that the appointment process was properly conducted and that the actions of the chairman were conducted for the benefit of the bank and without any procedural or substantive flaws