Well, things are not looking up for Vonage, and it seems that it is going to continue to go from bad to worse. As written previously, Vonage has been getting hammered by Verizon for infringing several of Verizon’s VoIP related patents. Additionally, last week Vonage posted a $66 million bond and agreed to pay a 5.5% royalty into an escrow account during its appeal of the previous District Court decision. In the wake of its financial troubles, Michael Snyder, the CEO of Vonage stepped down last week as well. As if all of the aforementioned events weren’t bad enough, the New York Times has reported that the company may file for bankruptcy.
The filing yesterday with the Securities and Exchange Commission also detailed other risks from continuing litigation. They include the possible interruption of service, an inability to repay its debt and a decline in its stock that could lead to the delisting from the New York Stock Exchange.
Perhaps worst of all is the fact that Vonage has come out and admitted that they have no way to work around Verizon’s patents, despite stating earlier that they were working on a way to do so.