The Central District Court dismissed Siemens' motion to move the IEC suit to Germany.
The lawsuit by Israel Electric Corporation (IEC) (TASE: ELEC.B22) against Siemens AG (NYSE: SI; XETRA: SIE) for bribing former Judge Dan Cohen to rig a tender for the purchase of gas turbines will be held in Israel, and not sent to arbitration in Germany. The Central District Court dismissed Siemens' motion to move the venue to Germany.
Judge Jacob Shienman ruled that moving the venue to arbitration would cause an unnecessary split between the claim against Siemens and the claim against the other defendants, which will continue in Israel.
In October 2013, as part of a plea bargain, Cohen admitted to and was convicted for taking a NIS 4 million bribe from Siemens, fraud, and breach of trust in the Rogozin Ltd. case, by not notifying IEC's board of his relations with the company's owners when the board was discussing the company's affairs.
Published by Globes [online], Israel business news - www.globes-online.com - on April 6, 2014
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