In December 2011, the Defense Ministry ordered Elbit Systems and IAI to cancel a Turkish Air Force contract.
Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) today announced that it has filed a $74 million lawsuit against the Israeli government for "damages and expenses caused the cancellation of export licenses for a project of a foreign customer." Elbit Systems subsidiary Electro-Optics - Elop Ltd. filed the lawsuit with the Central District Court in Petah Tikva.
Elbit Systems said that it filed the lawsuit after unsuccessful efforts to reach an appropriate compensatory settlement with the government.
In December 2011, the Ministry of Defense ordered Elbit Systems and Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) to cancel a contract with the Turkish Air Force for the supply of airborne intelligence gathering systems. The contract was signed jointly with Elbit unit El-Op and IAI unit Elta in late 2009. Elbit's share of the agreement with the Turks is $87 million and IAI's $54 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 8, 2012
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