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Sonus, Vonage settle class-action suits
Last week was quite a litigious one in the VoIP space, as Vonage and Sonus Networks settled separate class-action lawsuits regarding purported financial misdealing at the firms.
Sonus settled a class-action lawsuit filed in 2006 by shareholders accusing the company of making false or misleading statements about the company's financial health to inflate share price for $9.6 million, according to Boston.com. In 2007 the company settled a previous class-action suit, which also accused the company of making false or misleading financial statements, for $40 million.
Vonage announced it reached an agreement in principle to settle a suit brought by shareholders regarding its infamous 2006 IPO. Vonage stock, initially purchased for $17 during the IPO, is now trading for around $0.50 per share. The company did not release the amount of the settlement, but said it would fund all expenses through liability insurance, thereby not incurring additional fees from the settlement.
For more:
- see the Boston.com article on Sonus' deal here
- see the BusinessWeek article on Vonage's settlement here
Comments
Posted by MP | June 22, 2009 - 6:11pm
I have been unemployed since October. It's rough out there, but companies like Vonage are making it worse for the unemployed. I was having major DSL problems and, because of the high cost of DSL, had to disconnect my DSL. No DSL means no VoIP. Well, because I was canceling service before my year contract was up (and who knew I was signing a year contract? The tiny print did, that's who), Vonage wanted to charge me a cancellation fee of $40, cost of the device ($80), and taxes. Vonage is run by a bunch of buffoons if they don't realize that there are millions of unemployed people who can't afford food, much less continue paying for their horrible phone service.
Posted by Anonymous | July 26, 2009 - 5:30pm
Hey,
I must say that you're either a complete fool or a well paid "contributor" servicing PSTN incumbents for whom VoIP is a pain in their b*ts. Really - I can't decide who you are...
Posted by Anonymous | November 19, 2009 - 8:33pm
I too tried to cancel my service and was given a hard time although I supposibly had a two year cntract. I have nothing but problems with the phone service and was cancelling because I never have a phone anyway becuase theservice is awful. Where are the regulatory agencies now?????
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