Item 1.01. Entry into a Material Definitive Agreement

On June 15, 2006, C2 Communications Technologies Inc., a wholly-owned subsidiary of C2 Global Technologies Inc. ("C2"), filed a patent infringement lawsuit against Qwest Communications International, Inc., Global Crossing Limited, Level 3 Communications, Inc. (collectively, the "Defendants"), and certain other co-defendants. The complaint was filed in the Marshall Division of the United States District Court for the Eastern District of Texas and alleges that the defendants' services and systems utilizing Voice over Internet Protocol infringe C2's U.S. Patent No. 6,243,373 (the "'373 Patent"), entitled "Method and Apparatus for Implementing a Computer Network/Internet Telephone System".

On September 25, 2008, C2 executed a Settlement and License Agreement (the "Agreement") with the Defendants. The Agreement also includes Sonus Networks, Inc. ("Sonus"). Under the terms of the Agreement, C2 granted the Defendants and Sonus a non-exclusive, perpetual, worldwide, fully paid up, royalty-free license under any of C2's present patents and patent applications, including the '373 Patent, to make, use, sell or otherwise dispose of any goods and services based on such patents. The foregoing license grant was made in consideration of the Defendants' and Sonus's payment to C2 in the amount of $9.5 million. In addition, the Agreement contains other terms and provisions customary for agreements of this nature. The Agreement effectively concludes the litigation that commenced on June 15, 2006.

Item 8.01 Other Events.

On September 26, 2008, the Company issued a press release which is attached hereto as Exhibit 99.1 and is incorporated by reference herein.

Item 9.01 Exhibits

Exhibit No. Title

99.1 Press release dated September 26, 2008.

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