NEW YORK, July 25, 2006 (PRIMEZONE) -- August 1, 2006 is the deadline for qualified investors of Vonage Holdings Corporation (NYSE:VG) ("Vonage" or the "Company) to request that the Court appoint you as lead plaintiff for the class in the pending class action. Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) ("Pomerantz") filed a class action lawsuit in the United States District Court District of New Jersey against the Company and other related defendants. The class action was filed on behalf of purchasers of the common stock of the Company pursuant to its Directed Share Program, which was offered in the Company's May 23, 2006 Initial Public Offering (the "IPO" or the "Offering"). The complaint alleges violations of Section 5, 11, 12(a) (2), and 15 of the Securities Act.
Vonage describes itself as a leading provider of broadband telephone services, whose technology enables anyone to make and receive phone calls with a touch tone telephone almost anywhere a broadband Internet connection is available. The Complaint alleges that, in connection with the Company's Directed Share Program, defendants failed to disclose that: (1) Vonage's technology platform experienced problems carrying telephone data over the networks of certain Internet service providers, including AOL; (2) Vonage's voice-over-Internet protocol technology did not properly allow facsimile transmissions; and (3) the Company did not adequately inform Vonage customers who opened brokerage accounts and participated in Vonage's Directed Share Program concerning the customers' obligations to purchase allocated shares. Furthermore, the Complaint alleges that the IPO offering violated Section 5 of the Securities Act because the Company's e-mails to prospective participants in the program did not include an active hyperlink to the prospectus contained in Vonage's most recently filed registration statement.
Immediately following the IPO, shares of Vonage declined 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, amid concerns about the Company's ability to compete in the market place. Thereafter, shares of Vonage continued to slide on news that the Company's Directed Share Program was a debacle in light of several technical and legal failures. In the seven days after the IPO, shares of Vonage plummeted by nearly one third of its initial offering price of $17.00.
Lead plaintiffs must meet certain legal requirements. Shareholders outside the United States may also join the action, regardless of where they live or which exchange was used to purchase the securities. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Teresa L. Webb (tlwebb@pomlaw.com) or Carolyn S. Moskowitz (csmoskowitz@pomlaw.com) of the Pomerantz Firm at 888.476.6529 (or 888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz Firm, which has offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. For more information about the Firm, visit our web site at www.pomlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca