Another Day, More Bad News for Vonage
Vonage's much-maligned IPO got attacked again with the launch of a class-action lawsuit (hat tip to Alec Saunders). The lawsuit, filed last week in the U.S. District Court for the District of New Jersey, alleges Vonage “violated federal securities laws by publishing a materially false and misleading” prospectus, and that company insiders, “desperate to executive an exit strategy for themselves, embarked on an illegal course of conduct to sell shares of the company in a public market”. Since Vonage shares started trading two ago, they have tumbled nearly 30% to $11.98 from $17 - and you wonder why shareholders are so pissed off. Then again, if they had read the prospectus, they would have known Vonage's prospectus are, at best, uncertain as spends like a banchi on marketing to play in an ultra-competitive market with no barriers to entry.
June 5th, 2006 at 7:40 pm
Pretty much says it all. Lawyers ar scum sucking bottom dwellers. Hmmm, what if the IPO debut saw a gain, would they still file??????
Only in America, do we find a reason to employ a lawyer. They basically try to screw whoever they can to get whatever they can. Enron, Fannie Mae, MCI, AIG etc..
None of the lawyers paid a price for thier over looking of the law?
Now as a Vonage user and shareholder I took my chance on the IPO, Iread the prospectus, did my due diligence, the real mess up is the investment bakning team as they botched the IPO.
They oversold the value, oh well, who said investing short term was the right way. Warren Buffet took time so will I this company will mature and make money and the stock will rebound.