Last year I called the Vonage IPO a train wreck. Since then, the company has lost 80% of its value. The remaining 20% could be gone soon.
On Friday federal district court judge Claude Hilton issued an order prohibiting Vonage from signing new customers unless it stopped infringing on Verizon's patents. The order was issued one month after a jury found that Vonage had infringed Verizon's patents and set damages at $58 million plus a 5.5 percent royalty on future business. (Vonage's total market capitalization is only $522 million.)
Fortunately for Vonage, the appellate court stayed Judge Hilton's order, pending appeal of the case. Unfortunately for Vonage, the part of Judge Hilton's order requiring an appeal bond of more than $60 million was not removed by the appellate court. While a workaround may exist, Vonage looks to be in big trouble.
Silver lining: I won't have to remember to cancel my phone service before we move this summer.
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1. Posted by Emmerson McArthur on April 7, 2007 @ 15:53 | Permalink
My recient corresponce with Vonage:
Case # 11289786
I called many time today (4-7-07) concerning an invoice dated this date, and charged to my account the same day (apparently before I was even sent the charge) The charge is 118.74 for a Starcom telepone, that I never ordered, and never received. Invoice # 44806470. I had, in February of last year (2006) oredered a new account with a starcom wi fi telephone. I had it for a year, but was never able to make it work properly. I couildn't log into wi fi systems that required a log in. (this defect was apparently noted on sever blogs, which I wish I had read before ordering the service).
I called last month (March) to cancel the service. I was serviced by a very understanding reprehensive of Vonage, who persuaded my not to cancel, but to try a v phone instead. I asked about a credit for my Starcom phone, since it was useless to me, and he said I could receive a credit, by mailing it back to Vonage. He gave me mailing instructions, and a return code, which was followed up by an email with the same information. I mailed the starcom back the next day. He also said he would give me credits for the past inability to use the service. I never got credit for the phone I sent back, and am now being charged for an additional starcom that I never ordered, would not want in any event, and never received.
I spent all afternoon with vonage representatives on 4-7-2007, and had to ask for a supervisor 3 times. Although I had a case number (112897) each representative gave me different answers, and two supervisors put me on hold, and disconnected me after long waits.
I do not intend to forget about this, and asked that the last supervisor note on the case file that I will contact the credit card company asking the charge be denied, and that I intended to contact the attorneys for Verizon, and the federal judge handling the Verizon case against Vonage, and that I will try to contact every regulatory agency I can find with an interest to make this matter known. I consider you’re charging me before billing me for an item I neither ordered or received, fraud. I again demand that charge be reversed, and in addition that a credit be issued for the starcom phone I returned, and in addition, a credit for the service between Feb of 2006 and March of 2007 which would not work.
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