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Case Status:    DISMISSED    
On or around 07/06/2010 (Court's order of dismissal)

Filing Date: August 13, 2009

According to a press release dated August 14, 2009, the complaint alleges that Defendants' material omissions and dissemination of materially false and misleading statements concerning the Company's financial condition, cash management and internal controls caused the Company's stock price to become artificially inflated, inflicting damages on investors. MIND engages in the development, manufacture and marketing of billing and customer care software and the sale of related services for various types of communication providers, including traditional cable and wireless, Internet protocol or VOIP and broadband IP network operators. The Complaint alleges that Defendants knew or recklessly disregarded and concealed from the investing public that: (a) most of MIND's reported cash position comprised illiquid Auction Rate Securities ("ARSs"), and (b) internal controls over the monitoring, accounting and reporting of the Company's investment in cash equivalents and\or short-term investments were materially deficient.

The Complaint further alleges that Defendants misrepresented the Company's liquidity and its ability to attract customers, finance current operations, and pursue strategic acquisitions. In a Form 20-F filed with the SEC, Defendants later admitted that because "the stated maturity of these securities is 2046" and "there is currently a very limited market for these auction rate securities... this situation leaves us with limited cash resources with which to pursue our acquisition strategy." Defendants ultimately restated the Company's financial statements for 2006, and disclosed that almost $23 million of the Company's originally reported $27 million liquid cash position was invested in highly illiquid ARSs. Defendants also admitted that, "In connection with restatement, management determined that a material weakness in internal control over financial reporting existed as of December 31, 2006 because at that time we did not have effective controls designed and in place to ensure that our investments were classified in accordance with generally accepted accounting principles."

On October 23, 2009, Judge Richard M. Berman granted the motion to appoint Sarit Tomar as Lead Plaintiff and approved Lead Plaintiffs selection of Federman & Sherwood as Lead Counsel. On November 23, 2009, the lead plaintiff filed a First Amended Class Action Complaint For Violations of the Federal Securities Laws. On January 29, 2010, the defendants filed a motion to dismiss the First Amended Class Action Complaint. On July 2, 2010, Judge Richard M. Berman granted the defendants’ motion to dismiss and the case was closed.

COMPANY INFORMATION:

Sector: Technology
Industry: Software & Programming
Headquarters: Israel

SECURITIES INFORMATION:

Ticker Symbol: MNDO
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: S.D. New York
DOCKET #: 09-CV-07132
JUDGE: Hon. Richard M. Berman
DATE FILED: 08/13/2009
CLASS PERIOD START: 06/08/2006
CLASS PERIOD END: 02/27/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Federman & Sherwood (Oklahoma City)
    10205 N. Pennsylvania, Federman & Sherwood (Oklahoma City), OK 73120
    405.235.1560 405.235.1560 ·
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 09-CV-07132
JUDGE: Hon. Richard M. Berman
DATE FILED: 11/23/2009
CLASS PERIOD START: 06/08/2006
CLASS PERIOD END: 02/27/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Federman & Sherwood (Oklahoma City)
    10205 N. Pennsylvania, Federman & Sherwood (Oklahoma City), OK 73120
    405.235.1560 405.235.1560 ·
No Document Title Filing Date