Israeli Telecom Company’s $1.2 Million Stock Settlement OK’d

A proposed $1.2 million securities settlement between B Communications Ltd. and investors who accuse the Israeli telecommunications company of merger improprieties got preliminary approval from a federal court in New York Monday.

The company allegedly overpaid to acquire a partial subsidiary, enriching the companies’ ultimate owner and causing a 30% drop in stock price after criminal probes began.

The lead plaintiffs—two individual investors and a trust—are certified as class representatives for purposes of the settlement, which is fair and adequate, Judge J. Paul Oetken said for the U.S. District Court for the Southern District of New York.

The plaintiffs sued ...