STRAIGHT PATH COMMUNICATIONS INC. (NYSEMKT:STRP) Files An 8-K Other EventsItem 8.01
On March 7, 2017, the Company and lead plaintiff in Zacharia v. Straight Path Communications Inc. et al., No. 2:15-cv-08051-JMV-MF (D.N.J.), entered into a binding memorandum of understanding to settle the putative shareholder class action and dismiss the claims that were filed against the Defendants in that action. The agreed terms provide for a $2.25 million initial payment (the “Initial Payment”) and a $7.2 million additional payment (the “Additional Payment”). The Initial Payment will be paid into an escrow account within 15 days following preliminary court approval of the settlement, and will be fully covered by insurance policies maintained by the Company. The Additional Payment will be paid within 60 days after the closing of a transaction to sell the Company’s spectrum licenses as specified in the Consent Decree with the Federal Communications Commission dated January 11, 2017 (the “Consent Decree”), or, in the event that the Company pays the non-transfer penalty specified in the Consent Decree, within 60 days after that payment is paid. In any event, the Additional Payment will be payable no later than December 31, 2018. The settlement remains subject to entering in a definitive agreement and court approval.
About STRAIGHT PATH COMMUNICATIONS INC. (NYSEMKT:STRP)
Straight Path Communications Inc. is a communications asset company. The Company owns Straight Path Spectrum, Inc. (Straight Path Spectrum), Straight Path Ventures, LLC (Straight Path Ventures), and Straight Path IP Group, Inc. (Straight Path IP Group). The Company’s segments include Straight Path Spectrum, Straight Path Ventures and Straight Path IP Group. The Company holds a range of licenses for fixed and mobile wireless spectrum in the United States. These include licenses in the 39 gigahertz (38.6-40 gigahertz) band and the 28 gigahertz (27.5-28.35 gigahertz) portion of the local multipoint distribution service (LMDS) band. The Company also holds licenses for fixed wireless spectrum in other parts of the LMDS band. Straight Path Ventures is engaged in developing wireless technology. The Straight Path IP Group’s principal business is the acquisition, development, licensing and protection of intellectual property. STRAIGHT PATH COMMUNICATIONS INC. (NYSEMKT:STRP) Recent Trading Information
STRAIGHT PATH COMMUNICATIONS INC. (NYSEMKT:STRP) closed its last trading session down -0.26 at 32.07 with 53,949 shares trading hands.