NEW YORK, July 5, 2006 (PRIMEZONE) -- Wechsler Harwood LLP today announced that it has filed a class action suit on behalf of all securities purchasers of Vonage Holdings Corporation (NYSE:VG) ("Vonage" or the "Company") who purchased or otherwise acquired Vonage common stock pursuant or traceable to the Company's May 23, 2006 Initial Public Offering (the "IPO" or the "Offering") (the "Class"). This claim is also being brought on behalf of Vonage customers who purchased or otherwise acquired Vonage common stock through the Vonage Directed Share Program (the "Subclass").
The action, entitled Goldman v. Vonage Holdings Corp., et al, Case No. 3:33-av-001, is pending in the United States District Court for the District of New Jersey, and names as defendants, the Company, certain senior officers and members of Vonage's board of directors, as well as underwriter defendants Citigroup Global Markets Inc., Deutsche Bank Securities Inc., UBS Securities LLC, Bear, Stearns & Co. Inc., Piper Jaffray & Co., and Thomas Weisel Partners LLC who served as joint managers of Vonage's IPO. A copy of the complaint can be obtained from the Court or can be viewed on Wechsler Harwood web site at: www.whesq.com.
Vonage is a leading provider of broadband telephone services with over 1.6 million subscriber lines as of April 1, 2006. The complaint alleges that, in connection with the Company's IPO, defendants failed to disclose that: (1) Vonage's technology platform experienced problems carrying telephone data over the networks of certain internet service providers; (2) Vonage's voice-over-Internet protocol ("VoIP") technology did not properly allow facsimile transmissions; (3) the Company's management team's problematic history, including the fact that Tyco's ADT Security division took $600 million in charges for accounting improprieties while defendant Michael Snyder was President of the division; and (4) with respect to customers that opened brokerage accounts and participated in Vonage's Directed Share Program, such individuals were not adequately informed regarding their obligations to purchase allocated shares, specifically, that they were obligated to purchase allocated shares before they received notice that their conditional offers had been accepted, and were led to believe that the IPO would take place later than May 23, 2006.
If you are a member of the class described above, you may, not later than August 1, 2006, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wechsler Harwood, or other counsel of your choice, to serve as your counsel in this action
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders, employee investors and consumers and is responsible for hundreds of millions of dollars in recoveries. You can obtain a copy of the complaint by visiting the Wechsler Harwood website at http://www.whesq.com or by contacting the firm directly. The Wechsler Harwood website contains detailed information regarding this matter and additional information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact plaintiff's counsel Jeffrey M. Norton at 877-935-7400 (ext. 286) or a firm representative.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca