Newark, NJ – January 25, 2007 – IDT Corporation (NYSE: IDT, IDT.C), Union Telecard Alliance, LLC (“UTA”) and IDT Telecom, Inc. (collectively, “IDT”) announced that they have reached a settlement with plaintiffs in a nationwide calling card related class action. IDT previously accrued for and disclosed an agreement in principle in March 2005 in its quarterly report. The action related to claims concerning IDT’s prepaid and rechargeable calling card disclosures regarding rates and charges. This settlement resolves all of the companies’ pending calling card litigations. As part of the settlement, IDT denies any wrong-doing or liability and the parties agreed to the settlement to avoid further costs and uncertainties related to litigation.
The class action, In re IDT Corp. Calling Card Terms Litigation, remains pending before the United States District Court for the District of New Jersey until the settlement agreement is given final approval by the Court. The settlement affects customers who purchased an IDT calling card in the U.S. at any time between January 1, 1997 and January 22, 2007, or purchased an IDT calling card in the U.S. any time between January 22, 2007 and December 16, 2007. The settlement will provide refund PINs to those people who submit an eligible PIN to IDT. IDT agreed to provide refund PINs worth up to $20 million to eligible consumers of IDT calling cards for domestic telephone calls. Eligible consumers of IDT prepaid calling cards are entitled to a refund PIN with a value of $0.50 for domestic calls at $0.10 per minute for each eligible PIN submitted. Eligible consumers of IDT rechargeable calling cards are entitled to a refund PIN with a value of $0.50 for domestic calls at $0.10 per minute for every $5.00 worth of calling time that was loaded onto the card when it was first purchased and charged. IDT also has agreed to modify the disclosures contained on its calling cards and to propose a uniform calling card regulation to the New Jersey Attorney General’s Office. In addition, IDT has agreed to make $2 million or the equivalent dollar value of donations to charitable organizations such as educational scholarships and/or donations of calling cards as additional cy pres relief.
If the settlement receives final approval by the Court, members of the settlement class can submit a claim by accessing IDT’s interactive voice response telephone system by either calling a toll-free number (800-921-2781) or any IDT calling card access number or customer service number, or by accessing a link on IDT’s or UTA’s website (www.idt.net or www.uniontelecard.com). They must then enter a PIN number from an IDT calling card that was purchased on or before January 22, 2007 or purchased any time after January 22, 2007, but before December 16, 2007. Members of the settlement class may be required to provide their names and addresses, and the name of the calling card associated with the PIN number. IDT, subject to Court review, will then determine whether the member of the settlement class is eligible for a refund based on confirmation of a legitimate PIN and remaining funds in the pool. If eligible, IDT will provide members of the settlement class with a refund PIN.
The plaintiffs in In re IDT Corp. Calling Card Terms Litigation are represented by Plaintiffs’ Lead Counsel, Peter S. Linden, Esq. of the law firm of Kirby, McInerney, & Squire, LLP; by Plaintiffs’ Liaison Counsel, the law firm of Laurence J. Sass, Attorney at Law; and by other class counsel. IDT Corporation, UTA and IDT Telecom, Inc. are represented by James E. Tyrrell, Jr., Esq., Scott Louis Weber, Esq. and Elissa J. Glasband, Esq. of the law firm of Patton Boggs LLP.
About IDT Corp.
IDT Corporation is an innovative and opportunity seeking multinational company with operations that span various industries. Through its Telecom subsidiary, IDT provides telecommunications services worldwide to the retail and wholesale markets. 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 an Energy Services Company (ESCO) in New York State, receivables portfolio management and collection, ethnic food distribution, brochure distribution, 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.