The New York Times is reporting that brokerage firms are sending letters shaking down holdout Vonage investors who haven’t yet paid for their shares.
Vonage Holdings investors who have balked at paying for shares they bought in the company’s initial public offering, now worth less than half of the original price, began receiving letters this week from brokerage firms telling them to write a check or risk legal action.
We’re still not sure there is a practical way for Vonage or brokers to force these holdouts to pay. If there are a few customers who ordered lots of shares and haven’t paid, a lawsuit may make sense. But suing smaller investors probably isn’t worth the money that would be spent in litigation.
But what we really want is a copy of one of these letters. From our comments we know at least a couple of DealBreaker readers bought into the IPO. Did you get a letter? Send it our way. All personal details will be redacted and your identity will be kept confidential.
[Note: Need an explanation for our Vonage graphic? Click here.]
Vonage Buyers Told to Pay for Shares [New York Times]