NEWARK (CN) – Touro College, an Internet-based “university,” cheated its 20% equity partner, IDT Corp., of $38 million by selling its subsidiary, Touro University International, to Summit Corp. for $190 million, concealing it, and when caught, lying that it never had any equity interest in TUI, IDT claims in Federal Court.
IDT claims it helped Touro College, of New York City, set up the online college in 1998, in exchange for a 20% equity stake. It claims that Touro set up TUI, of Cypress, Calif., and operated it as a division of Touro until it sold it to Summit, of Boston, on Oct. 31 this year.
IDT says it learned of the sale from a press release. It demanded 20% of the proceeds. Touro refused, and refuses, and falsely claims it “does not have, and never had, any equity interest in TUI,” IDT claims.
Sorry, IDT tells Touro: pay the $38 million. IDT is represented by Joseph LaSala with McElroy, Deutsch, Mulvaney & Carpenter of Morristown, N.J.