In re Straight Path Communications Inc. Consol. Stockholder Litigation
|Court:||Delaware Court of Chancery|
|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.
Other Cases of Interest
Northern District of Texas Gerald H. Silk, Mark Lebovitch, Avi Josefson
Northern District of California John C. Browne, Jeroen van Kwawegen, Jonathan D. Uslaner, Michael Mathai, Lauren M. Cruz
Northern District of California Gerald H. Silk, Avi Josefson, James A. Harrod, Jeroen van Kwawegen, Adam Hollander, Jai K. Chandrasekhar
District of South Carolina (Columbia Division) John C. Browne, Jeroen van Kwawegen, Lauren McMillen Ormsbee, Michael Mathai, Kate Aufses
Northern District of California Jeroen van Kwawegen, Jeremy P. Robinson, Rebecca E. Boon
Delaware Chancery Court Edward G. Timlin, Andrew Blumberg, Mark Lebovitch
Northern District of California, Oakland Division Mark Lebovitch, David Wales, Alla Zayenchik
Northern District of California John Rizio-Hamilton, Mark Lebovitch, Jonathan D. Uslaner, Abe Alexander
Delaware Court of Chancery Jeroen van Kwawegen, Gregory V. Varallo, Christopher J. Orrico, Andrew Blumberg
Delaware Court of Chancery Jeroen van Kwawegen, Gregory V. Varallo, Andrew Blumberg, Edward G. Timlin, Daniel Meyer