Vonage Offers IPO Money-Back Guarantee
from the efficient-use-of-proceeds dept
Vonage's IPO continues to be a mess. With customers raising some questions over the share allocation process, reports today say that Vonage indemnified the offering's underwriters, meaning that if customers refuse to pay for shares they were awarded, it will cover the cost. It's an odd move, but could offer an out to Vonage customers that got in on the IPO, and now regret it. This illustrates one down side to Vonage's attempt to turn customers in to shareholders: since it solicitied the purchases, rather than letting interested parties go out on their own and get them, it essentially has to deal with the fallout as an extension of its customer-service operations. Irritating customers by luring them into buying a stock that's tanked isn't a good way to keep them happy, even if it was the customers' own unrealistic expectations that's causing the problems. Of course, any move that would let some buyers weasel out of their commitments will attract the class-action lawyers, an inevitable outcome, really, to this sorry IPO.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
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I used to be a vonage customer. . .
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Re: I used to be a vonage customer. . .
Only reason I'm not currently a Vonage customer is my location..where I now live broadband hasn't progressed yet.
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New Name for IPO's Then
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it's now pronounced
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Short that one.
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Class action?
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