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
    Anonymous Coward, 1 Jun 2006 @ 10:13am

    The demise of Vonage

    My thoughts on Vonage were also duly noted yesterday - they are fantastic until something goes wrong, then you're completely hosed with no hope of ever getting it fixed.

    Their customer service is FANTASTIC when you're a new customer setting up your service, after they've been billing you for a few months you can forget about ever getting any support at all, and don't even bother asking for a credit from them when your service goes down for a few days and it takes five or six hours on the phone to get the message across to them (cell phone minutes, of course, becasue your phone is dead).

    Bottom line - this company is jacked up top to bottom and doesn't offer a significant enough value proposition to survive. This latest is another example of the character or culture of the company - one day the CEO is on TV and says one thing (which is against SEC regulation, by the way), and then the company reneges days later.

    Someone will buy them for their customer base when they finally die. My money is on AT&T.

    BTW - I recently quit Boneage and got $40 / month flat, long distance included, with all the bells and whisltes including online voicemail checking, email notification, etc. from the new AT&T/SBC Company. It's a few bucks a month more, but I can always get them on the phone within minutes, the service works well every single time, and I've got real 911 service that actually works.

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