The battle of the billions in Israeli high-tech: The court has made a dramatic decision
The Israeli company Papaya was ordered to pay $719 million to its competitor Skillz, but now a new legal drama in the United States is changing the rules of the game and preventing immediate punitive measures.
Papaya, the Israeli high-tech company and inventor of the Skill-Based Tournaments category, has received approval from the Delaware court, presided over by Judge Mary F. Walrath, for a temporary relief order as part of the recognition proceedings the company is conducting in the United States.
As part of the approval granted, the American court is requested to recognize the Israeli proceeding as the process that will centralize Papaya's supervised payment arrangement. This decision joins the ruling of the District Court in Tel Aviv-Yafo, presided over by Judge Iris Lushi-Abudi, which approved Papaya's request for a temporary stay of proceedings as part of the Israeli process.
The temporary relief, granted despite the vigorous opposition of Skillz, maintains the status quo until the hearing on the recognition request and determines that Skillz will not be able to take collection and enforcement actions against Papaya during this period. The relief approved by the court includes a stay of proceedings and enforcement actions against Papaya's assets in the US.
During the hearing, as well as in the opposition filed shortly before it took place, Skillz opposed the granting of the relief and requested to require Papaya to deposit a bond or to restrict the transfer of funds outside the United States. After hearing the parties' arguments, the court rejected Skillz's requests and approved the temporary relief requested by Papaya.
The move comes following a judgment issued in a federal court in New York in a lawsuit filed against it by its business competitor, Skillz, in which Papaya was ordered to pay an unprecedented sum of $719 million.
