Vonage IPO disaster II

Vonage IPO disaster II

Not only the Vonage IPO was a disaster for the company and for the buyers as the share goes down some 30% in a week, but it is expected now that Vonage would be hit by a flood of lawsuits over its IPO. The main problem is that Vonage has set aside some 4.2m shares for its customers, and this practice is unusual and forbidden, except if the recommendation is suitable for the customer. Seeing the share falling down, many Vonage customers who participated in the pre-sale now refusing to pay for their shares, accentuating the share price decline. A first lawsuit was filed by Motley Rice.