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
    Topher3105, 1 Jun 2006 @ 9:06am


    And my opinion about Vonage has been noted. Vonage promises a lot, and delivers little. So, if I bought an IPO stock, should I have to pay for it? If Vonage can offer less then expected, I don't think they should complain about stock customers not showing them the money.

    Cheap as Vonage?, I have seen and used cheaper. MOST competitors to Vonage (at least in Canada) offer unlimited plans $10 cheaper per month then Vonage, and offer better features.

    Vonage is just over-hype, period. Its the buzz word that sticks in your head because too many websites like this rave about Vonage this and Vonage that. I bought into this and switch to them expecting cheaper and better service, and I didn't get it. Do yourself a favour and look around, and you will find a dozen competitors to Vonage that do VOIP right.

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