xfone8k.htm
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of
Report (Date of earliest event reported): March 19, 2008 (March 19,
2008)
XFONE,
INC.
(Exact
name of registrant as specified in its charter)
Nevada
(State or
other jurisdiction of incorporation or organization)
Commission
File No. 001-32521
11-3618510
(I.R.S.
Employer Identification Number)
2506
Lakeland Drive, Suite 100
Flowood,
MS 39232
(Address
of principal executive offices) (Zip Code)
601-983-3800
(Registrant’s
telephone number, including area code)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
Item
8.01 Other
Events.
On March
19, 2008, there was a development in the legal proceeding involving Swiftnet
Limited (“Swiftnet”), the wholly-owned U.K. based subsidiary of Xfone, Inc. (the
“Registrant”).
Background
As
previously disclosed, Swiftnet was served with a claim on October 11, 2005 that
was filed by MCI WorldCom Limited (currently operating as Verizon UK Limited)
(“MCI”) in an English court for the sum of £1,640,440 ($3,288,771) plus interest
accruing at a daily rate of £401 ($804) which at the date of claim had amounted
to £92,317 ($185,078). MCI’s claim was for telecommunication services
provided to Swiftnet. Swiftnet had been in dispute with MCI regarding amounts
due to MCI for telecommunications services provided by MCI to Swiftnet.
Swiftnet alleged that the disputed charges were improperly billed by MCI
to its account and therefore MCI should credit Swiftnet for a certain amount of
the claim. A substantial element of Swiftnet’s counterclaim for credits
was based upon special rates agreed verbally by Swiftnet and MCI, which were not
applied by MCI in its invoices. Swiftnet pleaded a counterclaim and that
£275,574 ($552,474) owed in relation to traffic terminated through the Xfone
network in Israel should be deducted.
Recent
Development
On 19
March 2008, the Judge handed down judgment in this dispute and awarded
£1,278,942 ($2,564,036) plus legal costs and interest in favour of MCI. The
Registrant's financial statements have carried the full amount Swiftnet
calculated that it owed to MCI based on the data held in Swiftnet’s billing
systems. The net effect of this judgement is that Swiftnet’s costs will be
increased by £705,645 ($1,411,927), plus MCI’s legal costs and interest payable,
which have not as yet been finally determined. Swiftnet is in the process of
taking legal advice as to whether it will seek an appeal to the English Court of
Appeal.
Item
9.01 Financial
Statements and Exhibits
(a) Not
applicable.
(b) Not
applicable.
(c) Not
applicable.
(d) None.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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Xfone,
Inc.
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By:
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/s/ Guy
Nissenson |
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Guy
Nissenson |
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President,
Chief Executive Officer and Director
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