ECI Telecom Ltd.

Company Name
ECI Telecom Ltd.
Stock Symbol
ECIL
Class Period
May 2, 2000 to February 14, 2001
Court
Eastern District of Virginia
Status
Settled

Plaintiffs sued ECI Telecom Ltd. and its President, CFO and a former CEO with violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and S.E.C. Rule 10b-5. On September 18, 2001, the District Court appointed The Firm as 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, The Firm began extensive discovery and was able to negotiate a settlement of $21.75 million for ECI investors.