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.

Reader Comments

Subscribe: RSS

View by: Time | Thread

  1. identicon
    brad, 1 Jun 2006 @ 11:11am

    I agree with Veteran User

    I have had no trouble with Vonage. I have used their online voicemail checking and email notification with no trouble.

    As for the people who do not want to pay for the stock they AGREED to buy, anyone who is stupid enough to agree to buy stock before it even hits the market gets what they deserve. Most IPO's tank in the first weeks and Vonage is no exception. Just read up on the company and you will see that they have yet to ever turn a profit.

    Of course if we all quit Boneage and signed up for AT&T for $40 a month flat, well here comes the monopoly again and I guarantee that the $40 a month flat will soon start increasing.

    Last thing, program a speed dial number in your phone for your local police department and when you get the recording press "0" and you will be transferred to the attendant. It might take 5-10 seconds more that dialing 911, but for $180 per year savings over the $40 flat AT&T, I will live or die with it.

Add Your Comment

Have a Techdirt Account? Sign in now. Want one? Register here

Subscribe to the Techdirt Daily newsletter

Comment Options:

  • Use markdown. Use plain text.
  • Remember name/email/url (set a cookie)

Follow Techdirt
Special Affiliate Offer

Report this ad  |  Hide Techdirt ads
Essential Reading
Techdirt Deals
Report this ad  |  Hide Techdirt ads
Techdirt Insider Chat
Report this ad  |  Hide Techdirt ads
Recent Stories
Report this ad  |  Hide Techdirt ads

This site, like most other sites on the web, uses cookies. For more information, see our privacy policy. Got it

Email This

This feature is only available to registered users. Register or sign in to use it.