Complain about a product or service

FTC Drops Vonage 911 Inquiry But Continues Telemarketing Probe

Shareholder Suits Challenge IPO

June 9, 2006

Vonage • Appeals Court Gives Vonage a Reprieve • Vonage CEO Exits as Company Struggles to Survive • Vonage Gets a Reprieve but its Future is Murky • Judge Orders Vonage to Stop Signing New Customers • Class Action Charges Vonage Deceived Consumers • Vonage Settles New Jersey Charges • FTC Drops Vonage 911 Inquiry But Continues Telemarketing Probe • Vonage Accused Of Violating Securities Laws • Vonage Customers Chafe Under Stock Purchase Plan • Vonage IPO Fails To Meet Expectations • Vonage 911 Caller Put On Hold While House Burns Down • Consumer Complaints

Good news and bad news for Internet phone carrier Vonage -- the Federal Trade Commission has decided not to take action against the company, at least for now, but two class action suits have been filed by disgruntled shareholders.

Vonage said the Federal Trade Commission concluded its investigation into the company's 911 disclosures and compliance, and won't take any enforcement action. However, the agency is continuing to look into the firm's telemarketing practices.

The agency opened an informal probe into Vonage's 911 and telemarketing compliance efforts in January 2005. Vonage said it's continuing to provide additional information to the FTC in connection with the telemarketing review.

The stockholder lawsuits allege, among other things, that Vonage omitted or misstated certain facts concerning its recent initial public stock offering.

One of the complaints additionally claims that the IPO prospectus allegedly contained misrepresentations or omissions concerning various Vonage products, including facsimile transmission capability. The company said it has not yet been served with a copy of either complaint.

The suits were filed in the United States District Court in New Jersey.

An earlier lawsuit charged that Vonage's plan to allow its customers to purchase stock in last month's Initial Public Offering, was against the law.

Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.

Share		Follow us on Twitter.

Back to the top |