Now, Vonage Says Customers Still Have To Pay Up For Shares
from the not-so-fast dept
With its stock price tanking following its IPO, the news that made the rounds yesterday that Vonage indemnified its underwriters and would cover the cost of shares allocated to customers who now don’t want to pay up led to speculation that they’d be let off the hook. However, Vonage has moved to make it clear that isn’t the case, and that it expects everyone who was allocated shares to pay up. This is certain to cause them a few problems, both from customers who want to get out of their obligation because of the falling stock price, as well as those alleging problems in the allocation of shares and ended up with shares when they thought they were receiving none. Vonage’s IPO has been a financial mess, but the real fallout will be in the lingering damage it does, both to the company’s balance sheet and to its reputation with customers.