That Vonage Complaint

Author:
Publish date:
Updated on

DealBreaker has obtained a copy of the complaint against Vonage. The complaint accuses Vonage, its directors and its underwriters of violating securities laws and improperly selling shares to customers. “
The lawsuit claims that the sale of shares to customers in the IPO violated NASD rules requiring issuers to consider whether purchasing the shares is appropriate given the customers financial status and investment objectives. The complaint describes this violation as part of a scheme by the owners of Vonage “desperate to execute an exit strategy for themselves.” A lack of institutional interest in Vonage stocks forced the owners of Vonage to seek out less sophisticated investors--namely, the customers, according to the complaint. It also alleges that the Vonage underwriters failed to undertake a proper due diligence investigation of the company.
Keep in mind that making these kind of allegations is what class action lawyers do. But just because cows chew cud doesn't mean that cud wasn't grass before they swallowed it for the first time. Or something. We've never been good at making up those homey-sounding, Dan Rather analogies.
Click here to read the whole thing

Related