IFF, Frutarom Sue Frutarom’s Former CEO Over $21 Million Bonus
In August, IFF revealed that during the integration process of Frutarom following its 2018 acquisition, IFF uncovered improper payments made to customer representatives with the knowledge of Key Frutarom executives
The lawsuit also recounts how, during the integration of Frutarom’s operations, IFF "was made aware of allegations that two Frutarom businesses operating principally in Russia and Ukraine made improper payments to representatives of a number of customers," and that key members of Frutarom's senior management were aware of it. IFF and Frutarom allege that Yehudai was aware of the payments, and they were carried out under his direction or at least with his approval. In facilitating the payments, the two allege Yehudai has violated his duty to Frutarom.
Yehudai’s legal representation, Aaron Michaeli of Israeli law firm Goldfarb Seligman, told Calcalist that his client rejects all claims against him. The allegations are baseless and slandering, made from motives that will be made clear at a future date, he said, adding that Yehudai is sorry to see a company he has contributed to so much and for so many years treat him this way. Yehudai will respond to the lawsuit in detail at the right time and place according to the law, Michaeli said.