LOS ANGELES, July 17, 2006 (PRIMEZONE) -- Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a Class Action lawsuit in the United States District Court for the District of New Jersey on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired the common stock of Vonage Holdings Corporation ("Vonage" or the "Company") (NYSE:VG) pursuant or traceable to the Company's May 23, 2006 Initial Public Offering (the "IPO"), and also on behalf of Vonage customers who purchased or otherwise acquired Vonage common stock through the Vonage Directed Share Program (the "Subclass").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Vonage, the IPO underwriters and certain of the Company's officers and directors with violations of federal securities laws. Among other things, plaintiff claims that defendants failed to disclose and misrepresented material adverse facts concerning Vonage's business and operations, among other things. Vonage, through its subsidiaries, provides broadband telephone services primarily in the United States, Canada and the United Kingdom. The Complaint alleges that in connection with the Company's IPO, defendants failed to disclose, among other things, that: (1) Vonage's technology platform experienced problems carrying telephone data over the networks of certain Internet service providers, including Time Warner Inc.'s AOL; (2) Vonage's voice-over-Internet protocol ("VoIP") technology did not properly allow facsimile transmissions; (3) the Company did not adequately inform investors about Vonage's management team; and (4) the Company did not adequately inform Vonage customers who participated in the Company's Directed Share Program concerning the customers' obligations to purchase allocated shares.
Immediately following the IPO, concerns about the Company's ability to compete in the marketplace caused Vonage shares to plunge from the $17.00 offering price, to close on May 24, 2006 at $14.85 per share -- a loss of $2.15, or 12.6 percent. As a result of investors' concerns, and the news that the Company's Directed Share Program was plagued by serious technical and logistical issues, Vonage shares declined more than 30 percent during the seven days following the IPO.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than August 1, 2006, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.