8-K

                               UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549
                   __________________________________________

                                    FORM 8-K

                                 CURRENT REPORT

                     Pursuant to Section 13 or 15(d) of The
                         Securities Exchange Act of 1934


Date of Report (Date of earliest event reported):  September 5, 2006


                             DATARAM CORPORATION
__________________________________________________________________________
            (Exact name of registrant as specified in charter)

        New Jersey                1-8266                     22-1831409
__________________________________________________________________________
 (State or other juris-      (Commission                  (IRS Employer
diction of incorporation)    File Number)               Identification No.)


     Route 571, P.O. Box 7528, Princeton, NJ                08543-7528
__________________________________________________________________________
     (Address of principal executive offices)                (Zip Code)

Registrant's telephone number, including area code: (609) 799-0071

__________________________________________________________________________
       (Former name or former address, if changed since last report)

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
    (17CFR 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))


Section 8 - Other Events.

Item 8.01.  Other Events.

     On September 5, 2006, Dataram Corporation (the "Company") announced
that it had entered into a Settlement and Release of Claims with a DRAM
manufacturer pursuant to which the Company released all of its claims
arising from matters in litigation pursuant to a pending anti-trust class
action.  The Company has received in settlement $2,300,000, which will
contribute approximately $0.16 per diluted share to the Company's fiscal
second quarter net earnings.

Section 9 - Financial Statements and Exhibits.

Item 9.01.  Financial Statements and Exhibits.

Exhibit 99.  Press Release dated September 5, 2006.

                                 SIGNATURE

     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.

                                      DATARAM CORPORATION


                                 By:  MARK MADDOCKS
Date:  September 5, 2006              _____________________________________
                                      Mark Maddocks, Vice President-Finance
                                      and Chief Financial Officer

EX-99

DATARAM            Dataram Contact:              Investor Contact:
                   Mark Maddocks                 Joe Zappulla
                   Vice President-Finance, CFO   Wall Street Consultants Corp.
PRESS RELEASE      609-799-0071                  212-681-4100
                   info@dataram.com              JZappulla@WallStreetIR.com



                 DATARAM ENTERS INTO SETTLEMENT AGREEMENT

PRINCETON, N.J. September 5, 2006 - Dataram Corporation (NASDAQ: DRAM) today
reported that on August 30, 2006, the Company entered into a settlement
agreement with a DRAM manufacturer whereby the manufacturer has paid the
Company $2,300,000.  In return, the Company has committed to not to
participate in, and affirmatively to opt out of, any class actions that have
been or in the future may be brought against the manufacturer by reason of or
in any way arising out of a specified litigation, as defined in the agreement.
The $2,300,000 payment will be recorded as other income in the Company's
second fiscal quarter ended October 31, 2006 and will contribute approximately
$0.16 per diluted share to the Company's fiscal second quarter net earnings.


ABOUT DATARAM CORPORATION
Dataram is a worldwide leader in the design and manufacture of high capacity,
reliable and innovative memory solutions.  With over 39 years of experience,
Dataram provides customized memory solutions for OEMs and compatible memory
for leading brands including HP, Dell, IBM, SGI, Sun Microsystems and Intel.
For more information about Dataram, visit www.dataram.com




The information provided in this press release may include forward-looking
statements relating to future events, such as the development of new products,
pricing and availability of raw materials or the future financial performance
of the Company. Actual results may differ from such projections and are
subject to certain risks including, without limitation, risks arising from:
changes in the price of memory chips, changes in the demand for memory
systems, increased competition in the memory systems industry, order
cancellations, delays in developing and commercializing new products and other
factors described in the Company's most recent Annual Report on Form 10-K,
filed with the Securities and Exchange Commission, which can be reviewed at
http://www.sec.gov.