The EURid organisation investigated some allegations of abuse, and in July 2006 announced the suspension of over 74,000 domain names and that they were suing 400 registrars for breach of contract. The status of the domains was changed from "active" to "on-hold". This meant that the domains could not be moved or have their ownership changed. The registrars also lost their access to the EURid registration database meaning that they could no longer register .eu domain names. The legal action relates to the practice of domain name warehousing, whereby large numbers of domain names are registered, often by registrars, with the intention of subsequently selling them on to third parties. EURid rules state that applications for domains can only be made after a legitimate application has been made to a registrar. The 74,000 applications were made in the name of only three Cyprus registered companies – Ovidio Ltd., Fausto Ltd. and Gabino Ltd.