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

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.

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

Insights

Corporate Litigation & Securities Expert

Delaware Supreme Court affirmed dismissal of all claims against IDT, concluding Straight Path shareholders suffered no harm.

The decision upholds the Court of Chancery’s post-trial finding that plaintiffs did not prove damages related to the sale of Straight Path to Verizon for $3.1 billion, and it resolves the class action claims as of Dec 03, 2025. This removes a material legal overhang tied to the historical spin-off and sale and clarifies that the court found no actionable misconduct or shareholder loss.

Key dependencies and risks remain procedural: parties may seek further procedural filings permitted by law, and IDT’s public disclosures and SEC filings may record the finality or any residual administrative steps. Watch for any follow-up docket entries and the company’s next SEC filing over the coming weeks for formal closure language and any related notes to financial statements; those items will confirm whether any contingent reserves or disclosures change.

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

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.

What immediate legal risk does IDT face after the Supreme Court affirmation?

The affirmation dismisses the claims against IDT, removing the litigation liability affirmed by the courts.

Where can investors find more information about IDT’s legal statements and risks?

Investors should review IDT’s SEC filings and the company’s investor relations disclosures for detailed legal risk information.