Legal Proceedings Report • Oct 29, 2025
Legal Proceedings Report
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Registry number: 513893123
To: Tel Aviv Stock Exchange Ltd.
Form T053 (Public)
Transmitted in MAGNA: 29/10/2025
Reference: 2025-01-081167
Regulation 36 of the Securities Regulations (Periodic and Immediate Reports), 1970
Issuance results must be reported on T20 and not on this form.
Reports on bond ratings or corporation ratings must be submitted through form T125.
Delayed report submission
Filing of a Request for Approval of a Class Action
This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer.
The Company hereby announces that on October 28, 2025, a claim and a request for its approval as a class action, pursuant to the Class Actions Law, 2006, were served to the Company and additional companies operating in the non-bank credit sector (the "Respondents"), on the grounds, in summary, that the Respondents allegedly do not cancel the registration of charges/pledges which were provided as collaterals for loans or credit they granted to their clients, even after full repayment of the clients' obligations toward any of them, as applicable.
The grounds claimed within the approval request include, among others: breach of statutory duty, breach of duties under the Pledge Law, 1967, breach of duties under the Companies Ordinance [New Version], 1983, breach of Section 9A of the Banking Law (Service to Client), 1981, breach of contractual obligation (the loan agreement), breach of duty of good faith and enhanced fiduciary duty, unfair terms in a standard contract, breach of duty to disclose under the Fair Credit Law, 1993, breach of the duty to disclose and prohibition of deception under the Supervision of Financial Services (Regulated Financial Services) Law, 2016, breach of prohibition of deception under the Consumer Protection Law, 1981, breach of statutory duty (Section 63 of the Torts Ordinance [New Version], 1968), tort of negligence under Section 35 of the Torts Ordinance [New Version], 1968, unjust enrichment, violation of the right to property and right to a good name anchored in Basic Law: Human Dignity and Liberty, and violation of the Defamation Law, 1965.
The group to be represented, as defined by the applicants in the request, is all clients of the Respondents, which are companies providing non-bank credit, who have repaid their entire debts for which charges were created as security, and for whom the Respondents did not fulfill their duty and did not cancel and/or remove those charges and/or did not file a notice of deletion of the charges to the registrar (Registrar of Companies and/or Registrar of Cooperative Societies and/or Registrar of Pledges and/or Land Registry Office and/or Israel Land Authority and/or various housing companies and any other official registrar in the State of Israel), whether the debts were from loans or from credit, for charges that should have been canceled or notified as deleted within the seven years preceding the filing of the request.
The total claim against all Respondents was estimated by the applicants at approximately NIS 60 million. The personal damage estimated for each client was estimated by the applicants at about NIS 2,000. However, the applicants' personal damages were not assessed, with the reasoning that they have not yet fully accrued, since, according to the applicants, as of the approval request date, the Respondents have yet to remove the charges/pledges that secured the loans or credit provided by the Respondents, as applicable. This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer.
The remedies sought by the applicants include, among others:
The Company is examining the claims raised in the approval request.
28/10/2025 at 12:15
| 3. If the Report Was Delayed – | Reason for Delay in Submission: | |||||
|---|---|---|---|---|---|---|
| -- | -- | -------------------------------- | -- | -- | -- | --------------------------------- |
Details of the authorized signatories on behalf of the corporation:
This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer.
| No. | Name | Role | |
|---|---|---|---|
| 1 | Eran Golan | CEO | |
| 2 | Shimon Ben Artzi | Other (CFO) |
Explanation: According to Regulation 5 of the Periodic and Immediate Reports Regulations (1970), a report submitted in accordance with these regulations must be signed by the persons authorized to sign on behalf of the corporation. The ISA staff's position can be found on the Authority's website: Click here
Securities of the corporation are traded on the Tel Aviv Stock Exchange
Short name: Direct Finance K.B.
Address: Af'al 35, Petah Tikva, 4951132
Phone: 03-7215739 Fax: 03-6282062
Email: [email protected]
Company Website: www.5555.co.il
Names of previous reporting entities: None listed
Electronic reporter name: Hanita Spector
Role: Company Secretary Employer Company Name:
Address: Af'al 35, Petah Tikva, 4951132
Phone: 050-2001533 Email: [email protected]
Form structure update date: 06/08/2024
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