Vonage Appeal Denied in Verizon Patent Infringement Case
-
Font Size:
The U.S. Court of Appeals for the Federal Circuit in Washington has denied Vonage’s request to appeal its patent infringement suit loss against Verizon.
The decision means Vonage will have to pay Verizon the full $117.5 million the companies agreed to during a settlement last month, plus an additional $2.5 million to charity (full summary). Had Vonage won the appeal, it would have owed Verizon only $80 million. Vonage spokesman Charlie Sahner said the court’s decision was “disappointing” adding, “We are pleased to continue putting litigation behind us and keep focusing on our core business.” Vonage has already burned through roughly $300 million of the $491 million it raised through its June 2006 IPO. The company has set aside $146 million to pay for patent dispute settlements with Verizon and Sprint. As of June 30 of this year, the company had $197 million in cash, versus $253 million in debt. Financial blogger Larry Dignan wrote before the recent court decision: “The big question is whether Vonage will have enough cash to hold out if it loses those appeals.” Investors were clearly concerned, sending VG shares lower by 4.05% in regular trading Thursday following the ruling, and another 3.3% lower in after-hours action.
Commentary: Vonage Reports Jump in Revenue and Settlement • Vonage Surges 71% on Verizon Patent Settlement • Vonage Shares Jump, But Churn and Debt Challenging • Vonage Loses Another Patent Case, This Time To Sprint
Stocks to watch: VG, VZ. Competitors: T, S. ETFs: WMH, VOX
Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.
Get Seeking Alpha Free Stock Alerts by Email!
Get Free Stock Alerts by Email!
-
Editor's Picks
-
Most Popular
- Financials Future Still Uncertain
- Apple: Margin Worries a Core Issue for Analysts
- Financials: How - And When - We Reached the Bottom
- Why Doesn't the CPI Seem More Like Real Life?
- ETF Industry Data Summary: 1H'08
- Asset Class Correlations
- Full list of Editor's Picks »
- Mother of All Short Squeezes? »
- Barron's Goes Bullish on Banks, Again »
- As WaMu, Wachovia Ready Earnings, Comparisons to Wells, USB Are Telling »
- Apple Investors Were Pinned on Friday »
- Buy Apple into Earnings »
- Three Stocks To Be Held To Infinity and Beyond »
- Historic Financial Collapse Underway? »
- U.S. Markets: Is it Time to Throw Caution to the Wind? »
- Apple F3Q08 (Qtr End 6/28/08) Earnings Call Transcript »
- Protecting Your Wealth and Profit During the 2008 Crash »
- If This Comes True, You'll Be Glad You Own Gold & Silver »
-
Long Ideas
-
Short Ideas
-
Cramer's Picks
- Financial Focus - Fast Money Recap (7/22/08)
- Soup Target – Cramer’s Mad Money (7/22/08)
- Get True Religion – Cramer’s Lightning Round (7/22/08)
- UPS: Market Bellwether at Fire-Sale Price
- Copper Down Low -- Cramer’s Stop Trading! (7/22/08)
- Four Long-Term Winners Selling at Deep Discounts
- Credit Card Breakdown: AmEx Disappoints, as Predicted
- A-Power: Silly Me, I Still Like Wind Power
- Financials: How - And When - We Reached the Bottom
- Apple's a Buy Under $150
- Full list of Long Ideas »
- Principal Financial Group Vulnerable to Commercial Real Estate Softening?
- Increases in Shorting, Only for Some
- Is a Ban on Short Financial ETFs on the Horizon?
- Is There a More Efficient Shorting Tactic?
- Short Oil as a Long Investment
- Ford's Financial Services Business About to Enter the Red
- Educational and Training Services Are An Excellent Short Opportunity
- Short Selling: Others Want Protection Too
- The SEC's Campaign Against Naked Shorting: Misguided or Right On?
- The Oil Bubble Will Meet the Same Fate as Tech, Housing
- Full list of Short Ideas »
- Soup Target – Cramer’s Mad Money (7/22/08)
- Get True Religion – Cramer’s Lightning Round (7/22/08)
- Copper Down Low -- Cramer’s Stop Trading! (7/22/08)
- Banks Hit Bottom – Cramer’s Mad Money (7/21/08)
- Ends In X – Cramer’s Stop Trading! (7/21/08)
- Great American Companies – Cramer’s Lightning Round (7/21/08)
- Market Rotation Bolsters Financials - Fast Money Recap (7/18/08)
- For Everything, Wind - Stop Trading! (7/17/08)
- Market Lunacy Provides Opportunity - Cramer's Lightning Round (7/17/08)
- Market Rotation Underway - Cramer's Mad Money (7/17/08)
- Full list of Cramers Picks »
Most Popular Feeds
-
ETFs
-
US Market
-
Long Ideas
-
Alt. Energy
- Full list of feeds »
Hedge Fund Jobs
Job Seekers:
- Search jobs by category
- Get job alerts by email or live feed
- Apply online
Employers
- See all recruitment options
- Get applications online or by email



