Dr. Baruch Aminov, a dentist, has filed a $40 million (NIS 157 million) lawsuit with the Tel Aviv District Court against defense electronics company Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) over a dental implant, which Aminov claims to have developed. Aminov also names an Elbit Systems' subsidiary in Romania, Elmet International SRL, and two company officers as defendants.
Dr. Aminov claims that, in 2006, Elbit Systems offered to manufacture the dental implants that he developed at a special department at the company's Romanian subsidiary. The dental implants were produced for a Swiss company, which Aminov set up. He claims that Elbit Systems hoped to make a three-fold gain from this arrangement: improve its commercial relations with Romania and sell it military equipment; profit from the manufacture of the dental implants for the Swiss company; and benefit from sales by acquiring a 35% stake in the Swiss company. He further alleges that he was in contract with a Russian company, TGM, which wanted to buy €40 million worth of the implants.
In the statement of claim, Aminov contends that Elbit Systems, through negligence, faults, and in breach of its commitments to Aminov and his company, caused it to lose the contract with TGM for the sale of 280,000 implants for €40 million.
Elbit Systems said in response, "Based upon a preliminary review, the company believes that there is no merit to the allegations made in the claim and will respond accordingly in court."
Published by Globes [online], Israel business news - www.globes-online.com - on November 28, 2012
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