If we ever get framed for anything, we’re going to hire Verizon’s lawyers. Not only have they convinced a jury that Vonage is infringing their client’s patents and should pay Verizon $58 million dollars and 5.5% of future profits, but they’ve gotten a judge to place an injunction on Vonage serving any new customers. From Reuters:
Roger Warin, a lawyer for Vonage, told the court the choice between a partial stay and a total prohibition on using the Verizon technology amounted to “cutting off oxygen or a bullet to the head” for Vonage.
Rebecca Arbogast, an analyst with Stifel Nicolaus, said Hilton’s order was a blow to Vonage. “If they can’t get new customers (while they appeal the case), I think it’s going to be tough to attract capital.”
Vonage’s stock sunk to an all time low of $3. Who’s getting hit in the head with a box now? —MEGHANN MARCO