Business Context and Reporting Period
Company: My Size, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: April 30, 2017 (Event date: May 7, 2017)
Context: The filing reports a material legal event under Item 8.01 (Other Events) regarding a shareholders' class action lawsuit filed against the Company, its board members, and its CFO.
Key Financial Metrics
This filing does not contain standard financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The only financial figure disclosed relates to the legal claim:
- Alleged Damages: NIS 18.8 million (estimated financial damage claimed by two classes of shareholders).
Material Changes and Legal Proceedings
Shareholders' Class Action:
- Filing Date: May 3, 2017 (Tel Aviv District Court); served on the Company on May 7, 2017.
- Defendants: My Size, Inc., its board members, and its CFO.
- Allegations: The plaintiffs allege that the Company's report dated April 19, 2017, regarding its engagement with the Israeli Post was false and misleading.
- Plaintiff Classes:
- Shareholders who sold shares between April 20, 2017, and April 27, 2017.
- Shareholders who held shares on April 20, 2017, and after April 27, 2017.
Management Commentary and Outlook
Company Position:
- The Company has reviewed the application with legal counsel.
- Management believes there is no direct causal connection between the April 19 report and the alleged damages.
- Management asserts there appears to be no correlation between the alleged scope of damages and the merits of the case.
- The Company is reviewing its rights to file a third-party claim against third parties whose unlawful acts may have adversely affected the share price.
- The Company will respond to the application within the timeframe ordered by the Court.
Investor Verification Checklist
- Verify the specific content of the Company's April 19, 2017 report regarding the Israeli Post engagement.
- Monitor the Tel Aviv District Court for the Company's formal response and the Court's ruling on the class action approval.
- Assess the potential impact of the NIS 18.8 million claim on the Company's financial position, noting the Company's current denial of liability.
- Watch for any announcements regarding third-party claims filed by the Company.