In re Straight Path Communications Inc. Consol. Stockholder Litigation

Court: Delaware Court of Chancery
Case Number: 2017-0486-SG
Judge: Vice Chancellor Sam Glasscock III
Case Contacts: Mark Lebovitch, Jeroen van Kwawegen, Edward G. Timlin, Alla Zayenchik

On July 5, 2017, BLB&G filed a verified class action complaint (the “Complaint”) in the Delaware Court of Chancery on behalf of JDS1, LLC (“Plaintiff”) and all other similarly situated stockholders of Straight Path Communications, Inc. (“Straight Path” or the “Company”).

BLB&G is pursing breach of fiduciary duty claims against Straight Path’s controlling stockholder (Howard Jonas), his son and Straight Path’s former CEO (Davidi Jonas), and a second Jonas-family company (IDT Corporation) in connection with their scheme to release hundreds-of-millions of dollars’-worth of indemnification they owed stockholders for a pittance.

On August 29, 2017, Co-Lead Plaintiffs JDS1, LLC and The Arbitrage Fund filed the operative verified consolidated amended class action. On June 25, 2018 the court denied defendants’ motions to dismiss . The Delaware Supreme Court affirmed the Chancery Court’s denial of the motion to dismiss on February 22, 2019. Trial is scheduled to begin on December 7, 2020.

BLBG continues to vigorously prosecute this action.

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