According to this report, Vonage (VG) may have violated the law by not including a link to their prospectus in the email sent to customers offering the IPO. If so, this could be seen as an “illegal offer.”
If this is found to be the case, the company would have to buy back customers’ stock at $17 per share. The current price is $12.01. This sounds like bad news.
CNN says: “Vonage did not return calls seeking comment.” In a way, that’s kind of ironic. Perhaps the storms in the northeast knocked out their cable, rendering their phone service useless.
Updated July 16, 2010 and originally published June 2, 2006. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @flexo on Twitter and visit our Facebook page for more updates.
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Vonage didn’t seem like a good deal anyway…they’re massively in debt and they’re burning through cash. I’m surprised so many bought into it. I feel bad for the people that were hoodwinked. I wonder how this will play out.