Karny & Co. withdraw claims in NIS 5m. lawsuit filed against Club-Hotel and Moshe Bublil

Lawsuit filed by Yaniv Nissim and Nissan Khakshouri, which is based on the Karny case, now appears to be without basis.

bublil 224 (photo credit: Courtesy)
bublil 224
(photo credit: Courtesy)
Accountants Yair Karny & Co. have withdrawn all their claims in an NIS 5 million lawsuit they filed against Club-Hotel and Moshe Bublil. The decision to withdraw their claims was made after the counter interrogation of accountant Gila Shlifer from Karny's office. Adv. Alex Hertman, who ran the interrogation in court, confronted Shlifer with many contradictions in her testimony. The witness even admitted that she had rewritten documents. Karny claimed in the lawsuit that Bubill had asked to retroactively change Club-Hotel's financial reports, which were long since prepared; he sued Bublil and Club-Hotel and charged payment and fees, which amounted to NIS 5 million. During her long interrogation, Shlifer confessed that the lawsuit included, in many cases, hourly rates ranging between $1,000 and $5,000 per hour. In addition, she admitted to have charged double and triple the normal fee, not to mention debits of hundreds of thousands of dollars to inactive companies. Eventually, Shlifer confessed that the professional services fee was global and there was no reason for charging per hour, and the Karny office was rewarded accordingly. After Shlifer was confronted by the judge for rewriting the documents, she burst into tears. As a result, the judge said, "We are all wiser today," and turned to closing the case. Karny's lawyer turned to the attorneys representing Club Hotel in a request to reach a settlement, in which only 3% would be paid, an amount lower than the accountant fee charges in the Club-Hotel books. Club-Hotel agreed to pay a symbolic amount as: "Beyond the letter of the law and merely as a good will gesture, without confessing the claims... and in order to save the costs of the trial..." The Y. Karny office was ordered by the court to transfer all the documents it holds to Club-Hotel. As a result of the developments in the Karny case, a lawsuit filed by Yaniv Nissim and Nissan Khakshouri, which is based on the Karny case, now appears to be without basis. The two were Bublil's partners in the Club-Hotel Holdings Company. Club-Hotel issued the following response: Accountant firm Y. Karny and Co.'s case was part of a campaign of several lawsuits orchestrated by Nisan Khakshouri, Nissim Yaniv and others, whose aim was to exert pressure on Bublil. The Karny lawsuit, which was supposed to be the basis of the other lawsuits, has become a bruised reed.