IDT Corporation Comments on Favorable Decision by the Delaware Court of Chancery in a Class Action Lawsuit Related to Straight Path Communications Sale to Verizon
03 Ottobre 2023 - 6:25PM
IDT Corporation (NYSE: IDT), a global provider of fintech, cloud
communications, and traditional communications services, today
commented on the decision by the Court of Chancery of the State of
Delaware in a class action on behalf of the former stockholders of
the Company’s former subsidiary, Straight Path Communications Inc.
(“Straight Path”). Straight Path was spun off from IDT in 2013 and,
in 2017, was sold to Verizon Communications for $3.1 billion. The
Court dismissed the claims against IDT and found that, contrary to
the plaintiffs’ allegations, the Class suffered no damages.
“We are very pleased that the Court today
dismissed all claims against IDT and found that Plaintiff and the
Class ‘suffered no damages,’” said Shmuel Jonas, IDT’s CEO. “We
encourage our stakeholders to carefully review Vice Chancellor
Glasscock’s decision. The charges the plaintiffs advanced for years
have now been resolved by the Court of Chancery.”
The Court of the Chancery’s decisions are available for review
and download here:
https://courts.delaware.gov/opinions/index.aspx?ag=court%20of%20chancery
The lawsuit, filed by the plaintiffs in 2017,
alleged that the Company aided and abetted Straight Path’s Chairman
of the Board and Chief Executive Officer Davidi Jonas, and Howard
S. Jonas in his capacity as controlling stockholder of Straight
Path, in forcing an unfair settlement of claims between Straight
Path and the Company at the time of the sale of Straight Path. The
Court found that the settlement in fact exceeded the value of those
claims, and that there was no harm to Straight Path stockholders as
plaintiffs alleged.
The plaintiffs will have 30 days from entry of
the final order to file an appeal to the Supreme Court of
Delaware.
All statements above that are not purely about
historical facts, including, but not limited to, those in which we
use the words “believe,” “anticipate,” “expect,” “plan,” “intend,”
“estimate,” “target” and similar expressions, are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. While these forward-looking statements
represent our current judgment of what may happen in the future,
actual results may differ materially from the results expressed or
implied by these statements due to numerous important factors. Our
filings with the SEC provide detailed information on such
statements and risks and should be consulted along with this
release. To the extent permitted under applicable law, IDT assumes
no obligation to update any forward-looking statements.
About IDT Corporation:
IDT Corporation (NYSE: IDT) is a global provider
of fintech, cloud communications, and traditional communications
services. We make it easy for families to contact and support each
other across international borders. We also enable businesses to
transact and communicate with their customers with enhanced
intelligence and insight.
Our BOSS Money international remittance, IDT
Digital Payments and BOSS Revolution international calling services
make sending money, paying for products and services, and speaking
with friends and family around the world convenient and reliable.
National Retail Solutions’ (NRS) point-of-sale retail network
enables independent retailers to operate and process transactions
more effectively while providing advertisers and consumer marketers
with unprecedented reach into underserved consumer markets.
net2phone’s communications-as-a-service solutions provide
businesses with intelligently integrated cloud communications and
collaboration tools across channels and devices. Our IDT Global and
IDT Express wholesale offerings enable communications service
enterprises to provision and manage international voice and SMS
services.
Contact:Bill Ulrey IDT
Investor RelationsPhone: (973) 438-3838E-mail: invest@idt.net
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