Facebook has filed a lawsuit for alleged fraud in purchasing an Israeli startup

The founder of the Israeli startup, Servicefriend Shahar Ben-Ami, has filed a lawsuit in a Tel Aviv labor court against Facebook for allegedly acting fraudulently and with extreme lack of goodwill, upon acquiring the company he founded. Ben Ami, who was removed from the CEO position in 2020, one year after the acquisition, is suing 25 million shekels. Ben-Ami claims that Facebook committed himself to paying him in banned shares worth millions of dollars, in order to persuade him to sell the startup he founded. But after the acquisition was completed, Facebook’s attitude towards it underwent a major change, until it was fired, as he claimed, in contravention of the agreement. High-tech entrepreneur Ben Ami was the main shareholder and CEO of Servicefriend, which he founded in 2015. He has developed an innovative artificial intelligence robot for use by customer service call centers through a communications app including via WhatsApp. The company thrived, and Gartner chose it as one of the world’s most promising startups in the customer service sector. In 2018, revenues more than doubled to $ 1.2 million. The Servicefriend attracted the attention of Facebook, who sought to get her to install her product in the digital wallet project she was developing. Facebook has tracked the evolution of Servicefriend over three years, and in September 2019 it acquired it for $ 13.5 million in cash to its shareholders including Ben Ami and Ido Arad, as well as $ 10.5 million in blocked shares allocated to the startup development team, which included Ben Ami, and 4 US dollars. One million shares banned for distribution to employees and about $ 2 million for consultants and bonuses for employees who move to Facebook. Ben Ami received 28,144 banned shares of Facebook valued at $ 5.1 million at the time, over a period of four years. Additionally, it has been promised that he will lead the customer development program in the blockchain project and will subordinate to Kevin Weil, Facebook’s vice president of product. The lawsuit filed by the attorney. David Führer of Fohrer Levi Orgad Law Firm and Law Firm. Ofer Hanouk and Yael Dolev of GKH Law say: “If Facebook had not promised the plaintiff such a high position and high pay in exchange for the acquisition of Servicefriend by granting an exceptional amount of withheld shares, valued at $ 5.1 million at the time over a four-year period, within At any time the plaintiff will lead the customer service program in the blockchain project – the plaintiff has not entered into the acquisition. In the lawsuit accused by Ben-Ami, “Facebook is a cruel and predatory company. It maximizes its benefits, and does not pay much attention to the harm it causes to others in the rest of the world. Related articles Facebook buys Israeli Servicefriend’s artificial intelligence robot “Evidence is growing all over the world about inappropriate behavior on the part of Facebook from violation of antitrust laws, to aggressive business behavior to crack down on small businesses including election interference in democratic countries. The plaintiff is One person was affected by Facebook’s aggressive activities and lack of goodwill. ” Ben-Ami claims that Facebook requested the acquisition and control of his early and successful company in order to use its technology and prevent others from using it, but after buying the company, Facebook violated its promises and agreements, and was fired. October 2020. Ben-Ami tells that just nine days after signing the sale agreement, Facebook has decided that it will not be subordinate to Weil but rather Dror Oren, who is hired to lead the blockchain project to serve customers. Ben Im claims that Oren sought to “ discredit him ” in the eyes of Facebook executives and turn him into persona non grata, isolate him before the start of the project, and prevent him from being integrated into the project. For his part, Facebook claims that there is a lack of confidence in relations between Ben-Ami and the company, so he was asked to resign. The service friend is also currently undergoing an investigation by the Israel Competition Authority, after Facebook failed to report its acquisition of it and Redkix, another Israeli company, which is developing emails. A Facebook spokesman said in response to the report, “This allegation is baseless and will be actively defended.” Posted by Globes, Israel business news – en.globes.co.il – April 1, 2021 © Copyright Globes Publisher Itonut (1983) Ltd. 2021