An Israeli District Court yesterday approved a class-action suit against Elbit Ltd (Nasdaq:ELBTF), Elbit Medical Imaging (Nasdaq:EMITF) and

Elron Electronic Industries




The plaintiffs are shareholders who sold Series 2 warrants of the Elbit group between August 1, 1998 and August 31, 1998, the paper writes.

The petition to acknowledge a claim as a class action suit was filed in 1999. The petition claims that in 1984, Elbit offered the public 637,500 Series 2 warrants convertible into ordinary shares of Elbit Ltd. Toward the last vesting date, September 1, 1998, the price of Elbit shares dropped below the vesting price.

The plaintiffs claim that Elbit neglected to publish or inform the stock exchange of offers it made between August and September 1998 to buy the activity of Elscint.

Elbit Medical Imaging indirectly holds 55% of Elscint. Elron Electronic Industries holds another 40%.