Harvard professor files $2M claim against insolvent tech founder Moshe Yanai amid $120M debt crisis
Elon Kohlberg claims he is owed $2 million from a decade-old Infinidat options deal.
Harvard professor and game theory scholar Elon Kohlberg has asked to join the insolvency proceedings of tech entrepreneur Moshe Yanai, claiming he is owed up to $2 million from a decade-old agreement tied to Infinidat’s sale to Lenovo. His request adds another layer to Yanai’s sprawling financial collapse, which includes an estimated $120 million in debts to banks, investors, and longtime friends.
Kohlberg, a professor of business administration at Harvard University and a prominent researcher in the field of game theory, had previously purchased Infinidat stock options from Yanai for $1 million. According to documents submitted to the court, Yanai promised that Kohlberg would receive $2 million, twice his original investment, if the company was sold. Infinidat was indeed acquired by Chinese technology giant Lenovo in January 2015.
Kohlberg, who also serves as a director at Medinol, controlled by Kobi and Judith Richter, and previously sat on the boards of Teva and Ormat, approached the Tel Aviv Magistrates' Court last week seeking official recognition as a creditor in Yanai’s insolvency case. His request is based on what he says were binding agreements and a series of emails exchanged between him and Yanai.
According to the documents attached to the filing, Yanai assured Kohlberg in January 2015 that if Infinidat were not sold by February 2016, Kohlberg could demand $1.4 million in return for the options he had purchased, $500,000 in each of two tranches, at any time he chose. If the company were sold before that deadline, Yanai allegedly committed to paying Kohlberg $2 million. With Infinidat’s sale to Lenovo finalized in January 2015, Kohlberg argues that the higher repayment threshold was triggered.
“Given the options held by Prof. Kohlberg,” the application states, “the applicant has a direct interest in Yanai’s insolvency proceedings, in light of the business relationships, rights, and obligations arising from the agreements, which may be affected by the ongoing process.”
Kohlberg’s claim now becomes part of a much broader financial crisis surrounding Yanai. The veteran high-tech entrepreneur, once regarded as one of Israel’s most successful storage-technology innovators, has amassed debts estimated at $120 million. These obligations span banks, investment funds, non-bank lenders, and numerous personal acquaintances.
Yanai’s assets, according to estimates submitted in related proceedings, include equity stakes in several startup companies, four homes, four vehicles, and other holdings valued at $60-70 million, far short of his total liabilities.
Several high-profile individuals and entities have already surfaced as creditors. Among them are the four children of economist and game theory professor Yair Tauman; Professor Avi Neuman of the Hebrew University, also an expert in game theory; and the Shavit fund, associated with businessman Leon Recanati.
