The Unexpected Effects of Israeli Courts' Approach to Dual-Listed Companies

Abstract

This Article studies the Israeli courts’ approach to choice of law in securities
class actions against dual-listed companies, and its unexpected adverse effects
on Israeli shareholders. Israeli courts apply American law to dual-listed
companies, as an inducement for companies to list their shares for trade on
the Tel Aviv stock exchange. However, one of the outcomes of this choice was
to enable American attorneys to include Israeli-traded shares in American
securities class actions. The Article claims that this outcome might undermine
Israeli shareholders’ rights and reduce their expected compensation.