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Noris Medical Claims Late CEO Liran Hagbi Hid Cancer and Stole $700K

A dental implant manufacturer is suing the widow of the late CEO, alleging that her husband, who died last spring at the age of 44, concealed his cancer diagnosis from his superiors, leaving the public company could not train a replacement in time.

It’s a according to a lawsuit obtained by The Daily Beastaccused Liran Hagbi, former chief executive officer of Medical Norisfor misleading the company president about his condition.

“At the end of 2021, Zvika Genis, the controlling shareholder and Chairman of Noris Medical, found that Mr. Hagbi was not fulfilling his duties and was acting sluggish and inattentive,” the civil suit said. filed Thursday in the New York State Supreme Court. “Many times, Mr. Genis asked Mr. Hagbi if he was ill or if there was anything affecting his ability to carry out his duties. Mr. Hagbi answered all questions that he was not sick.”

Genis is “of course concerned about Mr. Hagbi’s health and well-being,” the filing continued, “but is also concerned that Noris Medical will operate effectively.”

His fear was clearly realized on April 28, when Hagbi passed away.

Due to Hagbi’s “misrepresentation”, Noris was accused of “failing to prepare for Mr. Hagbi’s death or move other employees into his role.” After Hagbi’s death, the lawsuit states that “employees decided to terminate their agreements, suppliers moved their businesses elsewhere, and Noris Medical lost a substantial amount of money.”

The filing argued that because Hagbi was a corporate officer, he “breached his fiduciary duty to Noris Medical by failing to disclose his terminal illness… and by willfully misrepresenting his fiduciary duty to Noris Medical.” that he doesn’t have any diseases.” The former IDF soldier has remained silent even though he “knows that the severity of his illness will interfere with his ability to work and significantly affect his business,” according to the lawsuit Noris filed against Hagbi’s wife, Neta, as his property manager.

Hagbi lives in Manhattan with his family and took the helm of Noris Medical in 2019, leading the Nesher, Israel-based company from its US base in Las Vegas, Nevada.

“At the heart of our business is the idea of ​​helping clinicians perform a predictable, minimally invasive surgery,” Hagbi said Medhealth Vision, a trade publication, during his tenure at Noris Medical. “Additionally, providing physicians with prosthetic options to reliably complete prosthetic prosthetics for their patients.”

Harris Cogan and Amelia Clegg, attorneys representing Noris, did not respond to questions from The Daily Beast on Thursday. Emails seeking comment sent to Noris executives in Israel and the United States went unanswered. Unable to contact Neta Hagbi.

Disclosure of a key executive’s adverse health condition can be a legal and ethical minefield, with “no specific rule or obligation requiring disclosure,” according to experts. However, as attorneys Susan S. Muck, David A. Bell and Michael S. Dicke wrote in a 2020 memo shared with the Harvard Law School Forum on Corporate Governance, “the consensus is The general public of legal scholars and commentators appears to be that the CEO has a legal obligation to collectively notify the board of a serious medical condition so that they can plan a succession strategy. appropriate duties.”

New York State Supreme Court

The trio asserted that this duty extends to other company officials “who, if they think the CEO is negligent in performing his duties, have a duty to report Corporate risk is obvious to the board if the CEO does not tell the board. direct boarding.

In addition to allegedly concealing her cancer diagnosis, the lawsuit alleges Hagbi embezzled “more than $700,000” from Noris Medical.

After Hagbi’s death last year, the company reviewed all the payments the former chief executive received while at the helm, Thursday’s lawsuit states. The audit allegedly found that Hagbi authorized payments to himself in excess of the amount to which he was entitled”, including “greater compensation than he was entitled to, personal expenses to which he was entitled” I paid as business expenses and payments for unauthorized expenses.”

Noris Medical’s lawsuit argues that Hagbi’s property benefiting from his “unlawful enrichment” is “against justice and conscience” and is seeking damages “in excess of 700,000 dollars” will be determined at trial.




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