NEW YORK, June 20, 2006 (PRIMEZONE) -- The following statement was issued today by Squitieri & Fearon, LLP.
YOU ARE HEREBY NOTIFIED that a class action has been filed in the United States District Court for the District of New Jersey on behalf of purchasers of Vonage Holdings Corp. (NYSE:VG) ("Vonage" or the "Company") common stock on the open market since the Company's May 23, 2006 Initial Public Offering (the "IPO").
The Complaint charges Vonage and its Chief Executive Officer Jeffrey A. Citron with violating the federal securities laws. In particular, the lawsuit alleges that immediately following the IPO, the price of Vonage shares declined significantly and has continued to fall. As a result of the significant decline in price, many Vonage customers who had purchased the stock through Vonage's "directed share program" refused to pay the IPO price, obligating Vonage to indemnify the underwriters for the stock for which the beneficial owners did not pay. On May 30, 2006, Vonage publicly announced that if participants in the directed share program did not pay for their Vonage shares, the Company would repurchase those shares from the underwriters at the offering price.
The lawsuit contends that the Company's offer constitutes a tender offer and that all shareholders must receive the amounts paid to the underwriters.
Plaintiff seeks to recover damages on behalf of all purchasers of Vonage's common stock. Excluded from the Class are the defendants and members of their immediate families, any entity in which a defendant has a controlling interest and the heirs of any such excluded party.
Plaintiff is represented by the law firm of Squitieri & Fearon, LLP which has significant experience prosecuting class actions on behalf of investors and shareholders.
If you are a member of the class described above, you may, not later than 60 days from June 20, 2006, move the court to serve as lead plaintiff for the Class, if you so choose.
If you wish to discuss this action or have any questions concerning this notice or your rights or interest, please contact plaintiff's counsel, Lee Squitieri or Stephen J. Fearon, Jr. of Squitieri & Fearon, LLP at (212) 421-6492, lee@sfclasslaw.com, stephen@sfclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca