Company to Take Earnings Charge
IDT Corporation (NYSE: IDT) announced today that it will take legal
steps to reverse a $10.5 million award by a Newark, N.J. jury in a
dispute with a former employee who worked at IDT for only six months.
“The Company respectfully disagrees with the jury’s decision in this
case. We will pursue all avenues of redress, including post-trial
motions and, if necessary, appeals, to reach a fair result,” said Jim
Courter, IDT‘s Chief Executive Officer.
Pending a final resolution of this case, the Company also announced that
it will take a $10.5 million pre-tax litigation charge against earnings
in the third quarter.
On Friday, a federal jury awarded former IDT employee Alfred West $10.5
million in the latest twist to this long-running litigation with the
West, who worked at IDT in 2001 for only six months, asserted breach of
contract and related claims against IDT. After the judge dismissed the
contract claim several years ago, a trial on the related claims in 2005
resulted in a $1.5 million jury award for West.
That award, however, was set aside by the trial judge as being
unsupported by the evidence. In an appeal by West of that decision, an
appellate court reinstated West’s breach of contract claim, which led to
the second trial that concluded last week.
About IDT Corporation:
Corporation is an innovative and opportunity seeking multinational
holding company with operations that span several industries. Through
its Telecom subsidiary, IDT provides telecommunications services
worldwide to the retail and wholesale markets. IDT Energy operates an
Energy Services Company (ESCO) in New York State. IDT subsidiary
American Shale Oil Corporation (AMSO) manages IDT‘s
oil shale ventures. IDT’s Capital division incubates newer businesses,
and the Company’s Spectrum subsidiary holds its spectrum license assets.
IDT Telecom provides retail and wholesale telecommunications services
and products, including pre-paid and rechargeable calling cards,
consumer local, long distance, and wireless phone services, and
wholesale carrier services. Under the Net2Phone brand name, the Company
also provides a range of voice over Internet protocol (VoIP)
communications services. IDT Capital’s operations include receivables
portfolio management and collection, brochure distribution, Internet
Mobile Group, Net2Phone Ventures and other initiatives. IDT
Corporation’s Class B Common Stock and Common Stock trade on the New
York Stock Exchange under the ticker symbols IDT and IDT.C, respectively.
In this press release, all statements that are not purely about
historical facts, including, but not limited to, those with the words “believe,““anticipate,““expect,““plan,““intend,““estimate,““target“
and similar expressions, are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.All
forward-looking statements and risk factors included in this document
are made as of the date hereof, based on information available to IDT as
of the date thereof, and IDT assumes no obligation to update any
forward-looking statements or risk factors.