Seems like the crux of this ruling isn't the time tracking software per se, but the fact that she charged against files (i.e. clients) that she didn't work on.

FTA:

   "I've plugged time to files that I didn't touch and that wasn't right or appropriate in any way or fashion, and I recognize that and so for that I'm really sorry," Besse said in a meeting with her company, according to video cited in the ruling.