IDT, Founder Oppose Legal Fees Award Over Straight Path Deal

A Delaware court must approve a $9.5 million award for legal fees in shareholder litigation over Straight Path Communications Inc.'s sale to Verizon Communications Inc. to deter bad behavior by executives and directors, even though it granted only nominal damages in the case, attorneys for the shareholder argued Monday.

An attorney for IDT Corp. and its founder Howard Jonas said the fee application is “perverse” and granting it would personally harm Jonas.

The Chancery Court criticized IDT and Jonas for manipulating the $3.1 billion sale of IDT affiliate Straight Path, but its Oct.3 order ultimately determined that minority investors weren’t ...