ECI Telecom, Ltd. - Securities Class Action

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_______________
Copyright (c) 2001
Stanford Law School

ECI Telecom, Ltd. Conclusion: By the closing Order, dated November 15, 2002, from U.S. District Judge Leonie M. Brinkema of the U.S. District Court for the Eastern District of Virginia, the case was settled and dismissed with prejudice.

On September 18, 2001, the District Court appointed Glancy & Binkow Lead Counsel to prosecute this case on behalf of ECI investors. In the Second Amended Complaint, plaintiffs alleged ECI fraudulently engaged in a premature revenue recognition scheme, which violated both Generally Accepted Accounting Principles and ECI’s own accounting policies. Following the District Court’s denial of the defendants’ motions to dismiss, plaintiff began extensive discovery. According to the Notice of Pendency and Settlement of the Class action, the parties reached an agreement on or about November 18, 2002 and established a Settlement Fund of $21.75 million in cash.

According to the Second Amended Complaint, plaintiffs alleged ECI fraudulently engaged in a premature revenue recognition scheme, which violated both Generally Accepted Accounting Principles and ECI’s own accounting policies. More specifically, the Complaint alleges that defendants ECI Telecom Ltd. and certain of its officers and directors violated Section 10(b) of the Securities Exchange Act of 1934 (``Exchange Act'') and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market concerning, inter alia, ECI's reported revenue for the first, second and third quarters of 2000. On Feb. 14, 2001, the Company announced that it expected to move $38 million in revenue from 1999's financial statement to 2000, and $61 million from 2000 to 2001.

INDUSTRY CLASSIFICATION:
SIC Code: 3661
Sector: Technology
Industry: Communications Equipment

COMPANY/ISSUER NAME:	ECI Telecom, Ltd.
COMPANY/ISSUER TICKER:	ECIL
COMPANY WEBSITE:	http://www.ecitele.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

David Tamir, et al., v. ECI Telecom Ltd., et al.

COURT: E.D. Virginia	DOCKET NUMBER: 01-CV-913
JUDGE NAME: Hon. T. S. Ellis III
DATE FILED: 06/12/2001	SOURCE: Business Wires
CLASS PERIOD START: 05/02/2000	CLASS PERIOD END: 02/14/2001
TYPE OF COMPLAINT: Unamended/Unconsolidated
PLAINTIFF FIRMS IN THIS OR SIMILAR CASE:
Wechsler Harwood, LLP. 488 Madison Avenue 8th Floor, New York, NY, 10022 (voice) 212.935.7400, (fax) 212.753.3630, info@whesq.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 1

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT

Type:		Date on the document:

REFERENCE COMPLAINT

In Re: ECI Telecom Ltd. Securities Litigation

COURT: E.D. Virginia	DOCKET NUMBER: 01-CV-913
JUDGE NAME: Hon. T. S. Ellis III
DATE FILED: 10/05/2001	SOURCE: Business Wires
CLASS PERIOD START: 05/02/2000	CLASS PERIOD END: 02/14/2001
TYPE OF COMPLAINT: Consolidated and/or Amended
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC) 1100 New York Avenue, N.W., Suite 500, West Tower, Washington, DC, 20005 (voice) 202.408.4600, (fax) 202.408.4699, lawinfo@cmht.com Lionel Z. Glancy 1801 Avenue of the Stars Suite 308, Los Angeles, CA, 90067 (voice) 310.201.9150, (fax) , _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 2

DOCUMENTS FOR THE REFERENCE COMPLAINT
Plaintiffs' Second Amended and Consolidated Class Action Complaint (for Violation of Federal Securities Laws)
Type: Complaint		Date on the document: 12/07/2001
Notice Of Pendency And Settlement Of Class Action
Type: Notice		Date on the document: 10/02/2002
U.S. District Court Civil Docket
Type: Docket		Date on the document: 11/15/2002
U.S. District Court Civil Docket
Type: Docket		Date on the document: 12/21/2004

OTHER DOCUMENTS

Case Name and/or Number:
Type:		Date on the document:

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