Richards, Layton & Finger, P.A. along with co-counsel Cyrulnik Fattaruso LLP achieved a significant victory in the Delaware Court of Chancery today for clients IDT Corporation, Howard Jonas, and the Patrick Henry Trust, with the Court rejecting class action claims asserted by a former stockholder of Straight Path Communications Inc. seeking approximately $1.2 billion in damages. In an 82-page post-trial memorandum opinion, the Court held, following over six years of litigation and an 11-day trial, that the plaintiffs “suffered no damages.”
The trial team was led by Jason Cyrulnik, Paul Fattaruso, and Matthew Henken of Cyrulnik Fattaruso, and Rudolf Koch, Kevin M. Gallagher, Daniel E. Kaprow, and John M. O’Toole of Richards, Layton.
Straight Path was spun off from IDT in 2013 and was sold to Verizon Communications for $3.1 billion in 2017. The lawsuit, filed by the plaintiffs in 2017, alleged an unfair settlement of legal claims between Straight Path and IDT in connection with the sale of Straight Path. The Court of Chancery found that the settlement in fact exceeded the value of those claims, and that there was no harm to Straight Path stockholders as plaintiffs had alleged.
The Court of the Chancery’s decision is available for review and download here: https://courts.delaware.gov/Opinions/Download.aspx?id=353660
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