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US: Disgruntled Investors File Lawsuit Against Vonage

Vonage Holdings, the pioneering internet phone company whose shares have fallen 30 per cent since their market debut 10 days ago, has been accused in a class-action lawsuit of violating US securities laws. internet marketing promotion

Dirty Downloading Downloading music from the Internet has replaced the record store as the place to pick up the latest tunes. While a godsend to music lovers, the songwriter' sharing services. Record companies are fighting back with a series of lawsuits against individual consumers who have obtained free music downloads from unauthorized online services such as Kazaa and Grokster. Napster, sharing evildoer, has gone legit. Since 2003, the Recording Industry Association of America (RIAA) has filed over 3000 lawsuits against students, families, and parents.

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The suit, filed on behalf of shareholders by Motley Rice, a South Carolina-based law firm, accuses the loss-making voice over internet protocol company of publishing a materially false and misleading information when it pre-sold 13.5 per cent $531m of its initial public offering to customers.

But thanks to StubHub, or less, even, than the cost of a hot dog at the stadium. Of course not everyone gets it. Some liberal interest groups, such as the Public Interest Research Group in New York, have opposed a free market for tickets. And some teams, like the Yankees and the New England Patriots, the only team to file a lawsuit against StubHub, are against the idea of a robust secondary market.

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Texas has filed a lawsuit against two men believed to be part of the world's largest spam operations. The state's attorney general Greg Abbott announced that the civil lawsuit had been filed in federal court in Austin against Ryan Samuel Pitylak, a University of Texas student, and Mark Stephen Trotter of California.

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Vonage has yet to comment on the law suit, which was filed on Friday, but securities law experts suggest that it raises a number of significant issues, including whether this type of IPO is suitable for private investors.

The removal of the cross stems from a lawsuit filed against the city last year by a senior police volunteer who argued it was unconstitutional to have a cross on an official City of Spokane insignia. The federal lawsuit, filed by Ray Ideaus, said the patch was illegal and the department' Christian ethic was also unconstitutional because government cannot favor one religion over another.

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For claims under $10, 000, Vonage will reimburse you for your payment of the filing fee, following the completion of the arbitration. The filing fee currently is $125 for claims under $10, 000, but is subject to change without notice by the AAA. If you are unable to pay the filing fee, Vonage will pay it directly upon receiving a written request from you or the AAA. Except as otherwise provided for herein, Vonage will pay all AAA filing, administration and arbitrator fees for any arbitration initiated in accordance with the notice requirements above. If, however, the arbitrator determines that either the substance of your claim or the relief sought in the Demand is frivolous, then the payment of all such fees shall be governed by the AAA Rules. In such case, you agree to reimburse Vonage for all monies previously disbursed by us that are otherwise your obligation to pay under the AAA Rules.

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The complaint, posted on the law firms web site, claims that Vonages investors were motivated to push for an IPO because the company had been losing money and the investors were desperate for an exit strategy. 3g edition generation internet
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The complaint alleges that Vonages officers decided to offer shares to customers because they knew institutional investors, who normally buy IPOs, would be reluctant to buy Vonage stock. The company had spent heavily on marketing and had never been profitable. internet marketing resource
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Vonages stock dropped sharply on its first day of trading and has continued to fall amid suggestions that many of the estimated 10,000 Vonage customers who participated in the pre-sale are now refusing to pay for their shares. Vonage has about 1.6m total customers. internet ireland marketing
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Despite the precipitous share price decline some analysts including Albert Lin of American Technology Research, continue to recommend the stock. internet marketing technique
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We see this as an interesting side show and a PR fiasco for Vonage, said Mr Lin, in a note to clients on Monday, but do not see how the whole Direct Sale Placement will impact Vonages share value over time. filled increase internet
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We still see Vonage as being a company where beauty is in the eye of the beholder, and as long as the customer base grows, many competitors will find that base very interesting. With a very profitable customer valuation at rates lower than most competitors, we still find this to be a widely hated stock with the potential to surprise. affiliate business internet

He added, The lawsuit seems to go too far in that it throws in the idea that Vonage only created a sale to customers because there was no institutional interest.

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