On March 6, 2007, the Court entered the Memorandum Opinion and Order signed by U.S. District by Judge Roger W. Titus denying the plaintiffs motion for reconsideration. On March 13, 2007, the plaintiff filed a Notice of Appeal in the U.S. Court of Appeals for the Fourth Circuit.
On August 1, 2006, the plaintiffs filed a motion for reconsideration regarding the July 18, 2006 Order granting the motion to dismiss and denying the plaintiff’s request for leave to amend.
According to a press release dated July 18, 2006, ECtel Ltd., a leading provider of Integrated Revenue Management(TM) (IRM (TM)) solutions, announced that the United States District Court for the District of Maryland has granted ECtel's motion to dismiss the securities class action lawsuit against ECtel and certain of its directors and officers who served in such positions in the years 2001-2003. Under the federal rules the plaintiffs have a period of 30 days in which to appeal the court's decision.
The complaint charges ECtel Company, certain officers and directors of the Company who served in such positions in the years 2001-2003, as well as ECI Telecom Ltd. (a major shareholder during the referenced period) with violations of U.S. Federal Securities laws and breach of fiduciary duties in connection with disclosure of ECtel's financial results between April 2001 and April 2003. Specifically, Defendants’ failure to comply with generally accepted accounting principals (“GAAP”) and its own stated accounting policies, and its corresponding reporting of misleading financial results and dissemination of other false and misleading statements acted as a fraud on the market.