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.

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  1. identicon
    Mike Mixer, 1 Jun 2006 @ 7:31pm

    Bonerage

    The biggest mistake I see the company making is drawing joe sixpack into this IPO. It might just be that the price takes off a few weeks from now after
    the unwashed masses sell off at pennies on the dollar
    then the cry will be somebody scammed the thing to work out like that. Leave the prospecting to the old hands with the money to burn. People forget that the only people to get rich in the gold-rushes were the store owners, whorehouse madams,preachers, and the tax collectors, all the miners starved at wages
    or flat gave up.

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