Class Action Approved Against NewMed and Delek Group for Failure to Disclose Material Information to Investors
According to the motion, NewMed Energy (formerly Delek Drilling) concealed from investors in 2019 material information regarding an amendment to an agreement that reduced the amount of gas the Egyptian company Dolphinus, then one of…
Assessment
An Israeli court has approved class-action management against NewMed Energy and the Delek Group for allegedly concealing a material revision to a key supply agreement with an Egyptian buyer back in 2019. The court ruled that the company's partial disclosure amounted to a half-truth that misled investors. This case highlights the legal consequences when corporate disclosures fall short of full transparency, and it will now proceed to examine the extent of investor harm.