IDT, Founder Beat Lawsuit Over $3.1 Billion Straight Path Deal

IDT Corp. and founder Howard Jonas on Tuesday defeated shareholder litigation over the $3.1 billion sale of an affiliate, Straight Path Communications Inc., to Verizon Communications Inc.

Vice Chancellor Sam Glasscock III issued a complex 83-page ruling criticizing Jonas for manipulating the transaction but finding that his wrongdoing didn’t inflict any harm on minority investors. The judge awarded “nominal damages” to the shareholder leading the case without specifying an amount. Nominal damages—meant to show which side was right in principle—often take the form of a trivial award such as $1.

Glasscock, writing for Delaware’s Chancery Court, acknowledged that most of ...