The Delaware Supreme Court on December 3, 2025 affirmed the Court of Chancery’s dismissal of all claims against IDT related to the sale of Straight Path Communications to Verizon. The ruling confirmed that Verizon was not liable for any alleged wrongdoing in the transaction and that the claims were without merit.
The Straight Path acquisition, completed in 2017 for approximately $3.1 billion, was a strategic move by Verizon to secure millimeter‑wave spectrum licenses essential for 5G deployment. Straight Path had been spun off from IDT in 2013, and the sale followed a bidding war with AT&T. The lawsuit, filed on behalf of former Straight Path shareholders, alleged that IDT’s actions during the spin‑off and subsequent sale caused damages to minority investors.
The court found that the alleged conduct did not result in actual harm to shareholders, awarding only nominal damages. For Verizon, the decision eliminates a “material legal overhang” and removes any residual financial or reputational risk associated with the lawsuit. IDT’s CEO, Shmuel Jonas, expressed satisfaction with the ruling, stating that the lawsuit was without merit and that the court’s decision vindicated the company’s position.
The ruling has no immediate market reaction data, but it signals a clean legal slate for Verizon and confirms that the 2017 acquisition proceeded without undisclosed liabilities. The decision also reinforces IDT’s standing in the eyes of investors and sets a precedent for future spin‑off and sale transactions.
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