ESC Sues Genger Group Members

On April 23, 1999, ESC Medical Systems Ltd. (Yokneam, Israel) filed a complaint in the US District Court in the Southern District of New York against the Genger Group, whose members include Ari Genger, Barnard Gottstein, ESC director Thomas Hardy, and others (see ESC Medical Battles for Control of Company).

The complaint alleges that the group violated Section 13-D of the Securities and Exchange Act of 1934 by not disclosing their plan to take control of the company and their activities as a group, stating that these misrepresentations have caused and continue to cause harm to the company, its shareholders, its employees, and the investing public. ESC requested that the court stop the defendants from proceeding with their current actions and wants them to correct their misstatements. The company also alleges that Hardy has also breached his fiduciary duties to the company's shareholders.

The company has asked the court to not allow the defendants to solicit any proxy, acquire any additional shares of the company, vote on any of the company's securities, or vote for members of the board of directors cast by or on behalf of defendants, or solicited by defendants.