Vonage Runs Afoul Of Dreaded 'Failure To Hyperlink' Regulation

from the to-protect-investors dept

Two weeks ago, after it came out that Vonage was spamming its customers to promote its IPO (trading to start tomorrow), we predicted that their tactics could draw unwanted scrutiny from the SEC. This has proved true, albeit it’s a minor violation. Apparently, the email the company sent to customers failed to include a hyperlink to the company’s most recent prospectus on file with the SEC. Though it’s minor, and unlikely to draw much of a response, the company stated in a recent filing that it could come up in any future shareholder lawsuits. While it’s true that the company has made yet another mistake, the company is facing quite a pile-on in the media. If anything the incident shows how easy it is to run afoul of SEC regulations. While the SEC will probably ignore the mistake, you can be certain there are lots of class-action lawyers licking their chops in the event that the company stumbles.

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Comments on “Vonage Runs Afoul Of Dreaded 'Failure To Hyperlink' Regulation”

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Blaise says:

Re: Re:

Peet has a point, even though I do believe that any unwanted email should be considered ‘spam’ of some sort, there is a big difference between some strange random company and a company that you already have a business relationship with.

But that said, most responsible companies allow you to easily indiciate whether or not you want to receive emails of that sort.

I definitely don’t agree with it, but it seems there should be some middle ground ‘spam’ term so that emails like the one Vonage sent out can be properly dealt with…

fsckr (user link) says:


I’m always amazed by how persistent Vonage is with all their offerings. According to an article (and I think their prospectus) they spend almost $300 recruiting each customer.

I’ve also gotten their ‘spam’ but if I remember correctly, their Service Terms permit that kind of thing.

I can’t wait until they start calling….I mean it is not like you can unlist your number from them…

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