Last week was quite a litigious one in the VoIP space, as Vonage and Sonus Networks settled separate class-action lawsuits regarding purported financial misdealing at the firms.
Sonus settled a class-action lawsuit filed in 2006 by shareholders accusing the company of making false or misleading statements about the company's financial health to inflate share price for $9.6 million, according to Boston.com. In 2007 the company settled a previous class-action suit, which also accused the company of making false or misleading financial statements, for $40 million.
Vonage announced it reached an agreement in principle to settle a suit brought by shareholders regarding its infamous 2006 IPO. Vonage stock, initially purchased for $17 during the IPO, is now trading for around $0.50 per share. The company did not release the amount of the settlement, but said it would fund all expenses through liability insurance, thereby not incurring additional fees from the settlement.
For more:
- see the Boston.com article on Sonus' deal here [1]
- see the BusinessWeek article on Vonage's settlement here [2]
Links:
[1] http://www.boston.com/business/technology/articles/2009/06/18/sonus_wins_ok_of_96m_settlement
[2] http://www.businessweek.com/ap/financialnews/D98T56581.htm