Employee forgot to use the fridge: Millions in medicine destroyed
Insurance company Harel has filed a 6.4 million shekel lawsuit against logistics firm DSV. Due to a warehouse employee's error, a shipment of high-value medicine requiring 2–8°C storage was left in improper conditions for seven days and subsequently destroyed.
Insurance company Harel has filed a lawsuit in the District Court for 6.4 million shekels against the international logistics company DSV and its insurer, alleging significant damages to a high-value shipment of medicines destined for Israel.
According to the statement of claim, a warehouse employee made a critical error by storing arthritis and psoriasis medications for approximately seven days in an area with a temperature of 15–25 degrees Celsius, rather than in the required 2–8 degree cooling zone. Consequently, the entire shipment was disqualified for use. Harel, having already compensated its insured, the Israeli company Neopharm, for the full loss, is now seeking to recover the funds from the parties it holds responsible.
The shipment, ordered from the manufacturer UCB Pharma in Belgium, consisted of nine pallets of Cimzia and Bimzelx, weighing 1,049 kg with a value of approximately 1.76 million euros. Although the cargo was collected in good condition on January 22, 2026, it was placed in an improper storage area upon arrival at the DSV warehouse in Antwerp. The error remained undetected for 174 hours and 40 minutes.
A quality assessment by the manufacturer confirmed that the cumulative exposure to temperatures outside the cold chain exceeded the safety limits for both drugs. As a result, the entire shipment was declared a total loss and sent for destruction.
A central argument in Harel's case relies on DSV’s internal Corrective and Preventive Action (CAPA) report. The report identifies the incident as serious, citing the root cause as a warehouse employee failing to follow established procedures. Furthermore, Harel claims that DSV violated a quality agreement requiring incident notification within 48 hours; the report to the insured was not received until after February 2.
Harel alleges negligence and breach of contract, arguing that DSV is subject to a heightened duty of care due to its declared expertise in pharmaceutical logistics. The insurer further contends that because the damage occurred prior to loading onto a vessel, standard maritime liability limitations do not apply.
DSV responded to the claim by stating: "We do not comment on customer relationships."
