26 October 2007
Vonage Holdings Corp. (NYSE: VG) said today that it has settledits patent lawsuit with Verizon Communications. Vonage, an Internetphone service provider based in Holmdel, said it will pay Verizon amaximum of $120 million to resolve the suit.
Vonage is on thehook for at least $80 million. The final amount paid by the companydepends on how an appeals court rules on Vonages request for arehearing that concerns two Verizon patents. Vonage has already putaside $88 million in escrow for the patent battle.
Shares of thecompany shot up $0.65, or more than 42 percent, to $2.18 in morningtrading. Vonage shares also jumped earlier this month when the companyagreed to pay $80 million to telecommunications company Sprint Nextelto settle a patent suit.