Widower Sues Crowdfunding Firm for 309k Shekels Over Exploitative Campaign
An Israeli widower has filed a 309,000 shekel lawsuit against a crowdfunding company, accusing it of exploiting a fatal family fire to raise donations without authorization and withholding a 40 percent commission.
A grieving widower whose wife and child died in a devastating fire in June 2024 has filed a 309,000 shekel lawsuit against a crowdfunding company, accusing it of exploiting the tragedy to raise tens of thousands of dollars without authorization and retaining a 40 percent commission.
Tragedy and Unauthorized Campaign
The fatal fire broke out at the family home in Kochav Yaakov, apparently caused by an exploding electric bicycle battery. Aryeh Zehavi lost his wife, Edina, while trying to rescue their children from the smoke and flames. Nineteen people were injured, including family members, and one of his children suffered severe burns. Left as a widower tasked with caring for his surviving children and rebuilding his home, Zehavi claims a commercial company launched a donation campaign using his family's name and tragedy without his consent.
According to the lawsuit filed yesterday, Zehavi never contacted the company, solicited its services, or signed any agreement. A day after the fire, the company signed a contract with an individual who claimed to act on behalf of the family, designated as a "family friend." Zehavi argues he never authorized this person to contract with the company on his behalf.
The disputed agreement stipulated that the company would receive an 800 dollar setup fee and a 40 percent commission on donations, alongside other expenses. Financial documents attached to the suit show the campaign counter displayed 52,044 dollars, while the actual amount collected stood at 44,943 dollars. The company sought to deduct a 20,817 dollar advertising commission, an 800 dollar setup fee, 1,650 dollars in credit card fees, and 2,247 dollars in platform costs. Despite these substantial figures, only 29,950 shekels were ultimately transferred to the father's bank account on July 22, 2024.
Company Defense and Settlement Demands
The dispute escalated in November 2024 when the company presented the family with a "final settlement agreement," conditioning the release of remaining funds on a complete waiver of any future claims against the firm. The lawsuit characterizes this as an illicit attempt to pressure a bereaved family using donations intended for their relief, demanding the return of 134,092 shekels in withheld funds, an additional 100,000 shekels for potentially undisclosed donations, and 75,000 shekels for emotional distress.
In response, the company strongly rejected the allegations, arguing it acted under a valid agreement with a purported family representative. The firm's legal counsel maintained that a relative of the widower acknowledged the campaign and provided bank details for transfers, constituting tacit agreement. Furthermore, the company asserted that running a digital donation campaign entails significant promotional and operational expenses, including advertising costs on Chesed Today and platform fees. The firm stated its profits were minimal and noted it had offered 55,000 shekels as a compromise before the legal proceedings began.
