Mega-lawsuit against Cellcom following WHO radiation classification

Source: prnewswire.com
Date: 06/09/2011
Cellcom Israel Ltd announced today that a purported class action lawsuit against the Company and three other cellular operators was filed in the District Court of Tel-Aviv-Jaffa, by an Israeli citizen, in connection with the allegation that the defendants mislead customers. who buy accessories for carrying cellular handsets or do not disclose to them relevant data concerning radiation hazards associated with the usage of accessories for carrying cellular handsets, allegedly contrary to the cellular handsets manufacturers' instructions and warnings and the Israeli Ministry of Health' recommendations.

The total amount claimed from the Company, if the lawsuit is certified as a class action, is estimated by the plaintiff to be approximately NIS 1 billion (out of a total sum of approximately NIS 2.7 billion against all defendants), substantially all for non monetary damages.

In addition, the plaintiff notes his intention to seek interim remedies to prevent further sale of such accessories by the defendants or to require them to take necessary precautionary measures, including by complying with alleged disclosure duties and by ceasing alleged misleading, if the defendants would not do so voluntarily within 15 days, given, among others, the International Agency for Research on Cancer's press release dated May 31, 2011, classifying radiofrequency electromagnetic fields as possibly carcinogenic to humans (Group 2B), based on an increased risk for glioma, a malignant type of brain cancer1, associated with wireless phone use.

At this preliminary stage, the Company is unable to assess the lawsuit's chances of success.

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