AZOUR, Israel, /PRNewswire-FirstCall/ -- Ituran Location and Control Ltd. , announced that yesterday - December 18, 2005, it was served with a statement of claim which has been filed against it in the Tel-Aviv District Court. The plaintiffs in said lawsuit are shareholders holding 50% in a company (the "Contracting Party") which had entered into an agreement with the Company, alleging a breach by the Company of the agreement and other actions on the part of the Company causing the plaintiffs damages in the sum of NIS 14,000,000 (approximately, US$3 million).
A couple of months ago, the Contracting Party itself (and together with another shareholder in the Contracting Party), filed a lawsuit against the Company alleging the same breach of the agreement. Said lawsuit was dismissed by the Tel-Aviv District Court on August 15, 2005. In the lawsuit which the Company filed against the Contracting Party and said shareholder, in the total sum of NIS 1,400,000 (approximately, US$300,000) the court found for the Company.
The Company believes that the allegations presented in the aforementioned statement of claim are without merit and intends to vigorously defend such claims.
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