Former yes CEO Ron Ayalon Sues Bezeq for 3.8 Million NIS Over Legal Fees

Former yes CEO Ron Ayalon sued Bezeq for 3.8 million NIS in the Tel Aviv District Court, demanding reimbursement for legal fees and a withheld performance bonus following the dismissal of criminal charges against him.

Former yes CEO Ron Ayalon Sues Bezeq for 3.8 Million NIS Over Legal Fees
Photo-illustration WireIsrael: AI Generated

Former yes CEO Ron Ayalon has filed a 3.8 million NIS lawsuit in the Tel Aviv District Court against Bezeq, demanding indemnification for legal expenses incurred during a years-long criminal proceeding. Ayalon, who led the satellite TV provider from 2006 to 2018, seeks to cover the remaining balance of his defense costs after the indictment against him was dropped.

The case stems from the high-profile Bezeq investigation, in which Ayalon was accused of attempting to influence the cash flow of yes to benefit Shaul Elovitch's Eurocom. The multi-year legal ordeal, spanning investigations, hearings, and court proceedings, lasted roughly eight years before prosecutors unexpectedly withdrew the charges in April 2025.

Represented by attorneys Yaron Kostelitz and Amit Shalom, Ayalon argues that Bezeq issued him an official indemnification letter but has refused to cover the full scope of his reasonable legal fees. According to the lawsuit, legal representation required tens of hearings and more than 10,000 work hours, resulting in a total outstanding claim of approximately 3.3 million NIS, including VAT and linkage differentials. Bezeq has reportedly paid about 2.4 million NIS thus far but refuses to settle the remaining balance for the criminal defense and related civil proceedings.

In addition to legal expenses, the lawsuit demands the payment of a 2018 performance bonus totaling roughly 306,000 NIS, which Bezeq withheld following the outbreak of the investigation. While Bezeq recently agreed to pay the principal amount, it conditioned the transfer on Ayalon waiving statutory linkage and interest, bringing the total disputed bonus claim to approximately 428,000 NIS.

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