Vonage Settles Suit with Verizon
26 October 2007
Vonage Holdings Corp. (NYSE: VG) said today that it has settled its patent lawsuit with Verizon Communications. Vonage, an Internet phone service provider based in Holmdel, said it will pay Verizon a maximum of $120 million to resolve the suit.
Vonage Holdings Corp. (NYSE: VG) said today that it has settled its patent lawsuit with Verizon Communications. Vonage, an Internet phone service provider based in Holmdel, said it will pay Verizon a maximum of $120 million to resolve the suit.
Vonage is on the hook for at least $80 million. The final amount paid by the company depends on how an appeals court rules on Vonage’s request for a rehearing that concerns two Verizon patents. Vonage has already put aside $88 million in escrow for the patent battle.
Shares of the company shot up $0.65, or more than 42 percent, to $2.18 in morning trading. Vonage shares also jumped earlier this month when the company agreed to pay $80 million to telecommunications company Sprint Nextel to settle a patent suit.
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