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Delaware Supreme Court Affirms Court of Chancery’s Dismissal of Claims Against IDT Related to Straight Path Communications Sale to Verizon

IDT (NYSE: IDT) said the Delaware Supreme Court on Dec. 3, 2025 affirmed the Court of Chancery’s post-trial dismissal of all claims against IDT in a class action related to Straight Path Communications.

Sentiment and the balance of points

Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.

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Rhea-AI Summary

IDT (NYSE: IDT) said the Delaware Supreme Court on Dec. 3, 2025 affirmed the Court of Chancery’s post-trial dismissal of all claims against IDT in a class action related to Straight Path Communications.

The courts found no damages to Straight Path shareholders. Straight Path was spun off in 2013 and sold to Verizon for $3.1 billion in 2017. IDT characterized the ruling as vindication of its position.

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Positive

  • Delaware Supreme Court affirmed dismissal on Dec. 3, 2025
  • Court found no damages to Straight Path shareholders
  • Straight Path sale value: $3.1 billion (2017)

Negative

  • Class action litigation spanned 2017–2025, creating a multi-year legal overhang
Argus Dec 3 session
+2.10% close to close Open Argus
Details

News Market Reaction – IDT

On Dec 3, the day this news came out, IDT closed 2.10% above the previous close.

Data tracked by StockTitan Argus for the Dec 3 session.

Key Figures

Straight Path sale price: $3.1 billion Straight Path spin-off year: 2013 Supreme Court decision date: Dec. 3, 2025 +1 more
Straight Path sale price
$3.1 billion
2017 sale of Straight Path to Verizon
Straight Path spin-off year
2013
Year Straight Path was spun off from IDT
Supreme Court decision date
Dec. 3, 2025
Date Delaware Supreme Court affirmed dismissal
Class action filing year
2017
Year plaintiffs filed Straight Path class action suit

Historical Context

5 past events · Latest: Dec 04
5 events
  1. Dec 04

    Earnings results

    24h Move
    +0.5%

    Reported 1Q26 revenue and profits increasing across key segments.

  2. Dec 03

    Legal outcome

    24h Move
    +2.1%

    Supreme Court affirmed dismissal of all Straight Path claims.

  3. Nov 17

    Product launch

    24h Move
    -1.1%

    net2phone launched HIPAA-compatible AI agent for healthcare.

  4. Nov 14

    Earnings date notice

    24h Move
    +0.5%

    Announced timing and access details for upcoming 1Q26 results.

  5. Nov 11

    Product integration

    24h Move
    +1.6%

    NRS enabled Grubhub integration for independent retail network.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

class action, forward-looking statements, point-of-sale (POS)
3 terms
class action regulatory
"The Court of Chancery’s ruling came in a class action suit filed in 2017"
A class action is a lawsuit where a group of people with similar complaints sue a company together instead of each person filing separately; think of it as a neighborhood banding together to take one case to court rather than everyone hiring separate lawyers. Investors care because class actions can lead to large settlements or judgments, damage a company’s reputation, drain cash reserves, and distract management — all of which can reduce a company’s stock value and affect future earnings.
forward-looking statements regulatory
"are forward-looking statements within the meaning of the Private Securities"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
point-of-sale (POS) technical
"National Retail Solutions (NRS), through its point-of-sale (POS) platform,"
The point-of-sale (POS) is the place and system where a customer completes a purchase — think of a store’s checkout counter, a restaurant’s payment tablet, or the online checkout page. It includes the hardware and software that accept payments, record sales and update inventory, so it’s where revenue is captured and customer behavior is tracked; investors watch POS performance because it directly affects a company’s sales, cash flow and growth signals.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEWARK, NJ, Dec. 03, 2025 (GLOBE NEWSWIRE) -- IDT Corporation (NYSE: IDT), a global provider of fintech and communications services, commented on the decision issued today by the Delaware Supreme Court affirming the Court of Chancery’s post-trial decision dismissing all claims against IDT and finding no harm to Straight Path Communications Inc. (“Straight Path”) shareholders.

“We are very pleased by today’s decision from the Delaware Supreme Court, which puts to rest this lawsuit by affirming the post-trial decision of the Court of Chancery. That decision dismissed all claims against IDT and found that contrary to the plaintiff’s claims, Straight Path’s stockholders did not incur any damages whatsoever,” said Shmuel Jonas, IDT’s CEO. “We have said all along that this class action suit was without merit, and today’s decision upholding the Court of Chancery’s decision vindicates IDT’s position.”

Straight Path was spun off from IDT in 2013 and, in 2017, was sold to Verizon Communications for $3.1 billion. The Court of Chancery’s ruling came in a class action suit filed in 2017 by plaintiffs on behalf of the former stockholders of the Company’s former subsidiary, Straight Path.

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 and communications solutions through a portfolio of synergistic businesses: National Retail Solutions (NRS), through its point-of-sale (POS) platform, enables independent retailers to operate more effectively while providing advertisers and marketers with unprecedented reach into underserved consumer markets; BOSS Money facilitates innovative international remittances and fintech payments solutions; net2phone provides enterprises and organizations with intelligently integrated cloud communications and contact center services across channels and devices; IDT Digital Payments and the BOSS Revolution calling service make sharing prepaid products and services and speaking with friends and family around the world convenient and reliable; and, IDT Global and IDT Express enable communications services to provision and manage international voice and SMS messaging.

Contact:
Bill Ulrey
IDT Investor Relations
Phone: (973) 438-3838
E-mail: invest@idt.net

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FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did the Delaware Supreme Court decide about IDT on December 3, 2025?

The court affirmed the Court of Chancery’s post-trial dismissal of all claims against IDT.

Does the court’s decision say Straight Path shareholders suffered damages in the 2017 Verizon sale?

No; the court found that Straight Path shareholders did not incur any damages.

How is the 2017 sale of Straight Path to Verizon relevant to the IDT ruling?

Straight Path was sold to Verizon for $3.1 billion in 2017, which is central to the class action claims resolved by the courts.

When did the class action underlying the Delaware Supreme Court decision start?

Plaintiffs filed the class action in 2017 on behalf of former Straight Path stockholders.

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