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Case Status:    SETTLED
On or around 09/11/2008 (Date of order of final judgment)

Filing Date: September 03, 2004

The original Class Action lawsuit was filed on behalf of a class consisting of all persons who purchased or otherwise acquired securities of Team Telecom International Ltd. ('TTI' or the 'Company').

The Complaint charges, among others, TTI and certain of the Company's executive officers with violations of federal securities laws. Plaintiff claims that defendants' omissions and material misrepresentations concerning TTI's operations and performance artificially inflated the Company's stock price, inflicting damages on investors. The Complaint alleges that throughout the Class Period TTI engaged in a systematic scheme of accounting fraud to maintain the facade of a steadily growing enterprise. In order to facilitate this appearance, the Company engaged in a series of flagrant violations of generally accepted accounting principals ('GAAP'), including, but not limited to, improperly classifying assets and liabilities, improperly failing to report its subsidiary's earnings on a consolidated basis and prematurely and improperly recognizing revenues.

On November 12, 2002, a Company press release announced TTI's third quarter 2002 financial results. The press release announced revenues for the quarter of $10.3 million, compared with $16.0 million for the third quarter of 2001, and an operating loss of $6.8 million for the quarter, versus an operating profit of $3.3 million in the year-ago quarter. Net loss for the quarter was $6.1 million, or a loss of $0.51 per diluted share, versus a net profit of $3.7 million, or $0.32 per diluted share, in the prior year. This news shocked the market, causing TTI shares to plummet more than 28% on the same day the financial results were announced, November 12, 2002, and an additional 7% on heavy trading for the two days following the announcement.

NOTE: TTI is an Israeli corporation headquartered in Petach Tikvah, Israel, and a provider of network management systems, operations support systems and business support systems for communications service providers.

The initial complaint was filed on September 3, 2004. After being appointed Lead Plaintiff, Leumi filed its consolidated class action complaint on June 17, 2005, alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 1 0b-5 promulgated thereunder. Before the resolution of a motion to dismiss, Lead Plaintiff filed a first amended consolidated class action complaint (“FAC”) on February 24, 2006. Defendants filed another motion to dismiss.

On October 6, 2006, the Court granted the motion to dismiss the FAC but granted Lead
Plaintiff leave to amend the complaint within 30 days. On November 9, 2006, Lead Plaintiff filed the Second Amended Complaint (“SAC”). Defendants filed a motion to dismiss the SAC on January 10, 2007. On May 2, 2007, after full briefing and argument by the parties, the Court issued an order denying the motion to dismiss the SAC as to Defendants TTI, Lipshes, and Ofer, but granting the motion to dismiss the SAC as to Defendants Shlomo Eisenberg and Team Software Industries Ltd.

Beginning May 2, 2007, the parties effectively stayed the action, except for Defendants’ filing of an Answer, in an effort to resolve this litigation through good-faith settlement negotiations. As a result of a mediation session before retired California Superior Court Judge Daniel Weinstein on November 27, 2007, the Parties reached an agreement in principle to settle the Litigation for the sum of $4,300,000.

On May 29, 2008, District Court Judge Peter G. Sheridan granted the motion to preliminarily approve the settlement. On September 11, 2008, Judge Sheridan signed the Final Judgment and Order. According to the Order, the settlement is approved, the court awarded attorney fees and reimbursement of expenses and dismissed the action with prejudice.


Sector: Technology
Industry: Software & Programming
Headquarters: Israel


Ticker Symbol: TTIL
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data

"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. New Jersey
DOCKET #: 04-CV-4305
JUDGE: Hon. G. Donald Haneke
DATE FILED: 09/03/2004
CLASS PERIOD END: 11/14/2002
  1. Law Office of Jacob Sabo
  2. Smith & Smith LLP
  3. Squitieri & Fearon LLP (New York)
No Document Title Filing Date
COURT: D. New Jersey
DOCKET #: 04-CV-4305
JUDGE: Hon. G. Donald Haneke
DATE FILED: 11/09/2006
CLASS PERIOD END: 11/14/2002
  1. Glancy Binkow & Goldberg LLP (Los Angeles)
  2. Law Office of Jacob Sabo
No Document Title Filing Date
—Related District Court Filings Data is not available