| Company: | Vonage Holdings Corp. |
| Ticker Symbol: | NYSE: VG |
| Initial Public Offering: | May 24, 2006 |
| Date Filed: | Jun-07-06 |
| Lead Plaintiff Deadline: | Aug-05-06 |
| Court: | District, NJ |
| Allegations: |
A class action lawsuit has been filed in the United States District Court for the District of New Jersey on behalf of purchasers of the common stock of Vonage Holdings Corp. ("Vonage" or the "Company") (NYSE: VG).
The complaint alleges the company and certain named officers and underwriters violated the federal securities laws by publishing a materially false and misleading joint Registration Statement and Proxy-Prospectus in connection with its May 24, 2006 Initial Public Offering. Specifically, the complaint alleges that defendants failed to ensure that IPO shares distributed to their retail customers were done so in compliance with SEC and Exchange rules. According to the complaint, defendants violated these rules to create artificial demand for their IPO, after they realized that interest in the Vonage Offering was low among institutional investors. The complaint also charges that, because the Company had indemnified underwriters against the risk that Vonage customers would not pay for their IPO shares, that the underwriters who were responsible for distributing the shares and maintaining the Vonage customer accounts, also failed to conduct a proper due diligence investigation in connection with the Vonage IPO. Thus, as a result of many inexperienced and unsuitable investors being improperly allocated significant numbers of shares in the IPO, and because of other problems related thereto, once sold, Vonage shares declined more than 30% in the first seven trading days. The decline in value of these shares has been substantially exacerbated by many Vonage customers now refusing to pay for their shares.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The complaint alleges the company and certain named officers and underwriters violated the federal securities laws by publishing a materially false and misleading joint Registration Statement and Proxy-Prospectus in connection with its May 24, 2006 Initial Public Offering. Specifically, the complaint alleges that defendants failed to ensure that IPO shares distributed to their retail customers were done so in compliance with SEC and Exchange rules. According to the complaint, defendants violated these rules to create artificial demand for their IPO, after they realized that interest in the Vonage Offering was low among institutional investors. The complaint also charges that, because the Company had indemnified underwriters against the risk that Vonage customers would not pay for their IPO shares, that the underwriters who were responsible for distributing the shares and maintaining the Vonage customer accounts, also failed to conduct a proper due diligence investigation in connection with the Vonage IPO. Thus, as a result of many inexperienced and unsuitable investors being improperly allocated significant numbers of shares in the IPO, and because of other problems related thereto, once sold, Vonage shares declined more than 30% in the first seven trading days. The decline in value of these shares has been substantially exacerbated by many Vonage customers now refusing to pay for their shares.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
