Vonage is Ordered to Pay Verizon $120 million in Damages
Note: Is this the end of Vonage? At the bottom of the post, Vonage said is might not be able to meet its debt due in Dec 2008.
It’s not the news Vonage executives wanted to hear. The company was refused leave to appeal the decision that left it owing $120 million in damages to Verizon.
The US Court of Appeals turned down Vonage’s application, which related to a case involving three patents that Verizon owned relating to Voice over Internet Protocol (VoIP) calling.
Under the settlement, Vonage will pay $117.5 million to Verizon and another £2.5 million to charity. This follows another patent settlement with Sprint that saw Vonage having to pay $80 million. "We were not surprised, but disappointed that the court denied our request for a rehearing of the case," Charlie Sahner, a spokesman for Vonage, told Bloomberg News."We are pleased to continue putting litigation behind us."
Vonage share prices stood at $2 on Friday, and the company has already announced that it might not be able to meet debts coming due in December next year.
Source: Digital Trends
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