Lawyers Respond To Vonage Stumble With Errors Of Their Own
from the one-good-turn... dept
As the class-action lawyers smell blood at Vonage, one of the points on which the company is vulnerable is its failure to link to its prospectus in its solicitations to customers. This was a minor violation of SEC regulations, though as we noted it would likely set off the lawyers, were the IPO to go bad (which it did). Well, it seems that the lawyers aren't immune to detail mistakes either. When they filed their initial complaint, they alleged that the investment banks received a 17% cut, far more than the usual 7%. They noted in bold that, "Investors were willing to and did pay these large underwriting fees...because investors believed that such fees were being paid, in substantial part, to assure that the underwriters had conducted a thorough analysis of the transaction." Just one problem, the 17% was a typo made by the lawyers -- the banks only got the usual 7%. Fortunately for the law firm, there's nobody to hold their feet to the fire for such a minor mistake.
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.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Reader Comments
Subscribe: RSS
View by: Time | Thread
[ link to this | view in chronology ]