Elbit Systems Files a $74 Million Lawsuit against the Israeli Ministry of Defense
8 November, 2012
Due to deteriorating relatioships with Turkey, Israli Ministry of Defense cancelled Elbit's and Israeli Aerospace Industry's export licence to the Turkish Army
Haifa, Israel, Elbit Systems Ltd. (NASDAQ: ESLT) announced today that its subsidiary, Elbit Systems Electro-Optics (Elop) , was compelled to file a lawsuit against the Government of Israel, for damages and expenses caused in connection with the cancellation of export licenses for a project of a foreign customer.
This followed the unsuccessful efforts to reach an appropriate compensatory settlement, the approximately $74 million lawsuit was filed with the District Court of the Central Region. The lawsuit is a result of the MoD decision to block Elbit’s and Israel Aerospace Industry’s projects in Turkey, after the events of the Marmara ship, that came from Turkey in order to help the Hamas in Gaza.
The two companies were involved in high profile Avionics and Electro-optics projects for the Turkish Army. Elbit estimated that the decision stopped a $90 Million project. IAI said it stopped a $55 Million project ot its subsidiary Elta, worldwide known producer of RADAR systems.