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Vonage Sued Over IPO
Stock Option Trading By Armando Duke
Shaw's filing Friday was to support its argument in order to force Vonage to stop promoting its services as if it were Vonage's. Shares of Vonage closed down 22 cents, or nearly 2.25%, at $9.60 on Friday in New York trading. Shaw, which this week announced the acquisition of two privately held cable television companies, saw its shares close down 26 cents at $27.34 in New York.
Currency Day Trading (AXcess News) Houston, TX - Investors filed a class-action lawsuit against Vonage Holdings Corp. (NYSE: VG) Friday over its IPO, claiming that the offering to customers was a way to ensure the Offering would be filled due to concern from institutional investors.
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Financial Software Trading The lawsuit wasfiled in theUnited States District Court for the District of New Jersey Friday by the Atlanta law firm of Motley Rice on behalf of shareholders.
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Online Stock Trading Company The lawyers claim that shareholders losses since the debut of Vonage's IPO are directly related to the company and investors pushing an IPO intended to pay off debt, knowing the Internet telephony provider was losing money.
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Forex Day Trading An alert reader pointed out to AXcess News Saturday that Vonage nor its underwritershadn't doneany preliminary screening of its investors, referring to the offer being made to Vonage customers. "They were supposed to by law," said AXcess News' reader. "They didn't. If the NASD and the NYSE don't jump in early this week to pull the plug on the IPO, then Vonage IPO participants will have to depend upon the emerging number of class action law suits." But it appears that Motley Rice was one step ahead of AXcess News' reader and filed its class-action suit Friday.
If you want to dispute any Vonage charges on your statement, you must notify us within 7 days after you receive your statement from your bank or credit card issuer. If you do not dispute the charges within 7 days, you waive any right to contest the charges. HELP ( 4357) www.vonage. help_contactUs.php] 10. PROHIBITED USES; UNLAWFUL USES AND INAPPROPRIATE CONDUCT.
Financial In Market Last week shareholders who bought stock in the Vonage IPO began having second thoughts. Vonage released a statement saying that those customers who bought shares had to pay for them, while on Tuesday, Vonage said that its underwriters would not be liable, implying that investors themselves could back out of paying for their IPO shares.
Stock Trading System Motley Rice says that Vonage's actions are directly tied to the loss in share price and accuses the Internet telephone provider of breaking several laws.
Day Trading Stock Tip The Atlanta lawfirm saidVonagepre-sold at least 13.5% of the Company's IPO shares to its customers in violation of NASD Rule 2310. NASD Rule 2310 requires that a company recommending the purchase or sale of its securities to a customer must have a reasonable basis for believing that the recommendation is suitable for the customer. The Complaint also allegesVonage improperly crammed investors into the Vonage IPO regardless of their suitability.
Financial Forex Forex Software Lawyers for Motley Rice stated in an announcement Saturday, "Vonage had agreed to indemnify the Underwriter Defendants against certain liabilities relating to the customer pre-sale program; among those liabilities was the foreseeable possibility that customers who purchased in the IPO would refuse or fail to pay for the common stock allocated to them in the pre-sale."
Stock Market Trading "As a result of this alleged illegal conduct, shares of Vonage sold in the IPO 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 who participated in the pre-sale now refusing to pay for their shares," the lawyers concluded.
Day Lesson Stock Tip Trading Motley Rice is urging Vonage customers andinvestorswho bought shares in its IPO to contact to the law firm.
Financial System Trading Shares of Vonage rose 30 cents, or 2.5 percent, to $12.28 in early afternoon trading Monday following news of the IPO class-action lawsuit.
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