Some Vonage Investors Threatened With Legal Action
Via Red Herring.
Apparently buyer’s remorse is not a good enough reason to back out of a deal, so Vonage Holdings investors who have not paid for the company’s disappointing stock are being threatened with legal action unless they come up with payment.
Some of Vonage’s customers who signed up to buy shares of the company when it went public in May have refused to pay for more than a million shares.
The letters, sent by participating brokerages, were worded sternly, which was appropriate, according to a statement from Citigroup, one of the underwriters, since the prospective buyers were fully informed of their obligations.