Defense Firm Magal Sues Supplier Over Allegedly Defective Electronic Chips
Translated & summarized from Calcalist by baba
Magal Security Systems is suing Lantana Advance for allegedly supplying thousands of defective electronic chips purchased at a discount for early warning fences. Magal claims the faulty components prevented it from meeting Ministry of Defense obligations and forced it to buy replacements at a higher cost, totaling 1.1 million shekels. Lantana denies the claims, stating the chips were sold at a discount with the understanding they were not in original packaging and that Magal rejected functional components.
The story in 5 lines · by baba
- Magal Security Systems is suing Lantana Advance over thousands of allegedly defective electronic chips.
- The chips were intended for early warning fences to prevent terrorist infiltrations.
- Magal claims it had to buy replacement parts for 1.1 million shekels due to the defects.
- Lantana states the chips were sold at a discount and not in original packaging.
- Lantana denies the allegations and accuses Magal of filing a preemptive lawsuit.
Magal Security Systems is suing Lantana Advance, an electronic component broker, alleging that thousands of specialized chips purchased at a discount were defective. Magal claims these chips, intended for sensors in early warning fences designed to prevent terrorist infiltrations, were faulty, hindering its ability to fulfill contracts with the Israeli Ministry of Defense. The company stated it had to purchase approximately 10,000 replacement components from another supplier at a higher price, incurring costs of about 1.1 million shekels, and is seeking this difference from Lantana.
Magal, a subsidiary of Rafael and previously part of Aeronautics, specializes in border and strategic site defense. According to the lawsuit, Magal ordered the analog accelerometer chips from Lantana in 2024, noting their rarity as they are no longer manufactured. Lantana, controlled by Vania Kalfon, is described as a broker specializing in sourcing hard-to-find electronic components, often acting as a last resort for obsolete parts that may not be in original packaging or meet certain standards, and are sold at lower prices.
Magal asserts that initial shipments from Lantana contained defective components, causing hundreds of thousands of shekels in damages. The companies reportedly reached a settlement in 2025, where Lantana allegedly committed to supplying 5,200 new, unused components free of charge. However, Magal claims even these replacement components were defective, and Lantana failed to perform necessary quality checks.
Lantana denies the allegations, stating that Magal purchased the components at a discounted price with the understanding they were not in original packaging. Lantana claims Magal rejected some chips solely based on packaging, not functionality, and that subsequent replacement components, verified by lab tests, were also rejected. Lantana accuses Magal of filing the lawsuit as a preemptive tactic and vows to defend its rights in court.