Israeli Defense Ministry Seeks 30 Million Shekel Compensation from Aerodrome for Contract Breach

The Israeli Ministry of Defense has demanded 30 million shekels in compensation from Aerodrome, a drone technology company, for failing to meet the terms of a major supply tender last year. The ministry sent a formal warning letter to Aerodrome, stating its intention to pursue full compensation but also expressing willingness to negotiate to avoid legal proceedings.

Aerodrome, which specializes in drone-based data collection and AI-driven digital insights, won a 73 million shekel contract in late 2024 but was later disqualified in March 2025 due to non-compliance. Following the cancellation, the ministry sought damages for the incurred losses. The company’s founder and former CEO, Roy Dagani, resigned shortly after the dispute escalated, and Aerodrome has since refused to pay the demanded compensation.

Founded in 2014 by Dagani, an expert in drones and aerial intelligence, Aerodrome went public on the Tel Aviv Stock Exchange in 2021, expanding its market reach. Recently, the company underwent ownership changes, now controlled by a group including former Mossad chief Yossi Cohen and real estate investors Barak Rozen and Assi Tuchmaier, with Ronen Elad holding a 28.4% stake through Elad Holdings. The current CEO, Michel Ben Baruch, who replaced Dagani, resigned in May. Despite the legal conflict, Aerodrome’s stock has surged 337% this year amid investor optimism about the new management and ownership.