Seeking Alpha
Profile| ()  
Excerpt from our One Page Annotated Wall Street Journal Summary (receive it by email every morning by signing up here):

Vonage Seeks Post-IPO Payment From Customers Who Reneged

  • Summary: Vonage has apparently sent letters out to customers who had a change-of-heart in their decision to purchase company stock at the IPO. The company said last month that approximately one million shares were not yet paid for by customers. John Fitch of Cary, Ill., who said he planned to pay for his 100 share commitment but missed the deadline, got a letter from what appears to be Vonage counsel saying: "We hereby make demand that you remit $604... If we do not receive payment within 10 days we have been authorized to take further action against you." One consistent part to this story: nobody is commenting including the company, counsel, and investment banks.
  • Comment on related stocks/ETFs: There is no end to the ink spilled on the Vonage IPO disaster: this week, Mark Langner explained why no price is cheap enough for VG. The fiasco ranges from a nightmare to unsafe. One person seems to see opportunity here: founder Jeffrey Citron bought $1.3 million of stock in the company last month, bringing him to 33% ownership.

Seeking Alpha is not affiliated with The Wall St. Journal.

Source: Vonage Woes, Chapter 792