Vonage in Trouble. Appeal Refused; Verizon Owed $120 Million
This post was published 2 years 4 months 6 days ago which may make its actuality or expire date not be valid anymore. This site is not responsible for any misunderstanding.Roh, Roh. Vonage is in a small bit of trouble. A US appeals court has refused to revalue their patent dispute against Verizon and agreed that previously decided penalties of $120 million should stand.
Vonage settled the infringement suit on Oct. 25 after Verizon won both a jury verdict and an appeal in the case. The accord left open the amount to be paid until the appeals court decided whether to grant Vonage’s request for reconsideration.
Legal costs have eaten into Vonage’s cash flow and may increase its risk of bankruptcy. The Holmdel, New Jersey-based company said yesterday that it may not have enough money to pay $253.5 million in debt due as early as December 2008. Vonage, which generated cash of $22.5 million in the third quarter, will try to restructure the debt.
Seems like Vonage just can’t get any luck. Thankfully the $120 million settlement ends all patent disputes and should allow the company to proceed without fear of further litigation.
Was the “Roh Roh” at the beginning of this post supposed to be read in a Scoobydoo voice? cuz that’s how I read it.
If Vonage goes away then I will need to find another phone service provider.. I was thinking ooma.
So what was it again that made Vonage sue-able but left the competition in the clear?
I would recommend ooma. I bought mine recently, and the extra features are tremendous. Even if it did not have two-line capability and look cool, the price makes sense for a single-line service amortized over 1.5-2 years.. Quality and service are excellent.
Vonage was sued for infringing on numerous Verizon patents .