NEW YORK, July 19, 2006 (PRIMEZONE) -- The law firm of Kirby McInerney & Squire, LLP announces that a class action lawsuit has been commenced in the United States District Court for the District of New Jersey on behalf of all purchasers of Vonage Holdings Corporation ("Vonage" or the "Company") (NYSE:VG) common stock pursuant to or traceable to the Company's May 23, 2006 Initial Public Offering (the "IPO" or the "Offering"). This claim is also being brought on behalf of Vonage customers who purchased or otherwise acquired Vonage common stock through the Vonage Directed Share Program (the "Subclass").
Please visit our website, which offers summary and detailed information concerning the suit at http://www.kmslaw.com or contact us by phone at (888) 529-4787 or by email at info.newcases@kmslaw.com for more information.
If you purchased Vonage stock during the Class Period, and wish to serve as lead plaintiff, you must move the Court no later than August 1, 2006. Any member of the purported class may move the Court to serve as lead plaintiffs through counsel of their choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffs' counsel, Ira M. Press, Esq. of Kirby McInerney & Squire, LLP at 888-529-4787, or via email at ipress@kmslaw.com.
The complaint charges Vonage and certain of its officers and directors with violations of the Securities Act of 1933.
Vonage is a leading provider of broadband telephone services with over 1.6 million subscriber lines as of April 1, 2006. The complaint alleges that, in connection with the Company's IPO, defendants failed to disclose inter alia, that: (1) Vonage's technology platform experienced problems carrying telephone data over the networks of certain internet service providers; and (2) Vonage's voice-over-Internet protocol ("VoIP") technology did not properly allow facsimile transmissions.
Immediately following the IPO, shares of Vonage plunged from the offering price of $17.00 per share to close, on May 24, 2006, at $14.85 per share, a loss of $2.15, or 12.6 percent, on concerns about the Company's ability to compete in the market place.
Following these concerns, shares of Vonage continued to fall on news that the Company's Directed Share Program was plagued by serious technical and logistical issues. In the seven days after the IPO, shares of Vonage declined over 30 percent.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca