After the Israel Securities Authority (ISA) tightens the regulations for binary options industry, GM Media Software Solutions moved its operation to Georgia. This decision led to the Israeli Binary Options call center lawsuit against the firm. Will more litigation follow?
21 March, AtoZForex – In the last month, we have seen that Israel Securities Authority (ISA) has been trying to eliminate the flaws from the binary options industry, promoting the Knesset legislation. Following the ban on binary options trading in Israel, ISA is now looking forward to putting an end to the overseas binary options marketing.
Due to the Knesset legislation, a number of binary options call centers decided to shut down their operations in Israel. One of these binary options call centers was GM Media Software.
Two traders suing GM Media Software Solutions
GM Media Software Solutions, a binary options marketing and trading company, closed their operation in Israel following the new regulation. The company moved their operation to Georgia firing most of the Israeli employees. Two traders earning over $12,000 per month were among them who were fired by GM Media without any severance pay.
Both traders want to remain anonymous, but each claims that the company fled to Georgia without honoring their social rights. Now they have filed a lawsuit and are suing the company and its owner, Nadav Gover. Advocate Hanoch Ehrlich has filed the lawsuit on behalf of the two traders in the Tel Aviv District Labor Court.
Israeli Binary Options call center lawsuit
According to the Israeli Binary Options call center lawsuit, the two former employees claim unlawful termination of the employment. As the company moved their operation to Georgia. The official suit charges read:
"The claim in question concerns the indisputable firing of two young employees in their early 20s without even paying them the severance payment due to them by law."
This case against GM Media, could encourage other employees from the binary options call center to also take legal action. Moreover, it could spur the more litigation in other binary options call centers that have decided to move out from Israel due to the toughen stance of ISA on the binary options industry in Israel. As the lawsuit states that since 2016 "negative publicity grew about companies like GM Media, which are engaged in binary options trading."
Think we missed something? Let us know will more litigation follow in the comments section below.