Well, that took longer than expected.
Vonage Holdings Corp., the Internet phone company whose shares have fallen 30 percent since their debut, was accused in a class-action lawsuit of violating securities laws and improperly selling shares to customers.
The suit was filed June 2 in the U.S. District Court in New Jersey by Mount Pleasant, South Carolina-based Motley Rice LLC, according to the law firm's Web site. On May 23, Vonage amended a May 22 filing and strengthened its warning that it may have made technical errors in its IPO.
Those errors, it said, may give customers buying shares the right ``to require us to repurchase their shares at the IPO price.'' Holmdel, New Jersey-based Vonage sold 31.3 million shares and raised $531.3 million on May 23.
About 10,000 of Vonage's 1.6 million customers had agreed to buy shares, which were priced at $17. Some customers have said they won't pay for the shares; the company responded by saying it may sue.
If Milberg Weiss were still on the top of its game we're pretty sure this suit would have been filed sometime last week.
(The above left graphic, in case you're wondering, is "screwed on crack.")
Vonage Accused of Breaking Securities Laws in Class-Action Suit [Bloomberg]