Howard Jonas Imperiled $3B Straight Path Sale, Director Says [Law360: Mergers & Acquisitions]

By Jeff Montgomery (September 2, 2022, 9:10 PM EDT) — A former Straight Path Communications director testified Friday that board negotiators faced a “non-trivial risk” that controlling stockholder Howard Jonas would “blow up” what became a $3.1 billion sale of the company in order to block claims against its former parent IDT Corp., which he controlled.

K. Chris Todd, one of the three members of SPCI’s board special litigation committee, recalled that point in 2017 during the fifth day of a 10-day Delaware Chancery trial. A class of SPCI shareholders sued on its behalf seeking a billion or more in damages in connection with the sale terms from IDT, Jonas and…

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