PHILADELPHIA, June 6 /PRNewswire/ -- On June 6, 2006, an investor represented by the law firm Berger & Montague, P.C. filed an expanded securities class action lawsuit on behalf of all persons and entities who acquired common stock pursuant or traceable to the initial public offering ("IPO") of Vonage Holdings Corp. ("Vonage") beginning on May 23, 2006 (the "Class"). A copy of the Complaint is available at the Berger firm's website, http://www.bergermontague.com/.
Plaintiff alleges that defendants violated sections 11, 12, and 15 of the Securities Act of 1933, 15 U.S.C. Sec. 77k, 771(a)(2) and 77o. Plaintiff names as defendants Vonage , co-lead underwriters Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and UBS Securities LLC, Chairman Jeffrey A. Citron, CEO Michael Snyder, CFO John S. Rego, and Directors Peter Barris and J. Sanford Miller (collectively, the "Defendants"). This action is captioned Gibbons v. Vonage Holdings Corp, et al., 3:06-CV-02531, and was filed in the U.S. District Court for the District of New Jersey and has been assigned to The Honorable Stanley R. Chesler.
Plaintiff alleges that Vonage's IPO Prospectus omitted and misstated key facts concerning Vonage's products, services, management, Customer Directed Share Program, and the timing, mechanics and conduct of the IPO. More specifically, Plaintiff alleges that Defendants:
- misstated that Vonage's products and technology would work generally
across all Internet providers when, in fact, Vonage's technology
platform has experienced numerous deficiencies carrying data over the
networks of certain Internet service providers such as Time Warner
Inc.'s AOL unit;
- misstated that Vonage's technology was sufficient to accommodate
properly facsimile transmissions when, in fact, the Company uses an
unreliable computer network protocol that results in faxes not being
transmitted properly;
- failed to disclose adequately important facts regarding certain of its
senior management team, including that CEO Snyder had overseen Tyco's
ADT Security division at a time when accounting improprieties in that
division led Tyco to take a $600 million accounting charge, among other
things, and that CFO Rego had been a senior financial officer of
Winstar Communications when that company had allegedly engaged in
securities fraud, accounting improprieties and false revenue
recognition practices, and ultimately filed for bankruptcy; and
- misrepresented key aspects of Vonage's IPO process including the timing
of when shares would be delivered, Class members' ability to transact
in the shares, and that Vonage's Customer Directed Share Program would
be "centrally administered" and work properly, among other things.
If you purchased Vonage common stock, you may move for appointment as Lead Plaintiff on or before August 1, 2006. A Lead Plaintiff is a representative party that acts on behalf of other class members to direct the litigation. The Private Securities Litigation Reform Act of 1995 directs courts to assume that the class members with the "largest financial interest" will serve as the Lead Plaintiffs. Courts have discretion in determining which class members have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms, and as a percentage of their net worth.
The law firm of Berger & Montague, P.C. is a Philadelphia law firm, consisting of over 75 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience representing institutional investors and other large investors in class action securities litigation, and has played lead roles in major cases over the past 30 years which have resulted in recoveries of several billion dollars to investors. The firm has represented investors as lead counsel in such leading securities actions as Rite Aid, Sotheby's, Waste Management, Sunbeam, Boston Chicken and IKON Office Solutions. The standing of Berger & Montague, P.C. in successfully conducting major securities and antitrust litigation has been recognized by numerous courts. For example:
"In short, it would be hard to equal the skill class counsel demonstrated
here." In Re: Rite Aid Corporation Securities Litigation, MDL Docket No.
1360, Master File No. 99-1349 (E.D. Pa.) ($334 million settlement).
"Class counsel did a remarkable job in representing the class interests."
In Re: IKON Office Solutions Securities Litigation, Civil Action No. 98-
4286 (E.D. Pa.) (partial settlement for $111 million approved May 2000).
"[Y]ou have acted the way lawyers at their best ought to act. And I have
had a lot of cases .... In 15 years now as a judge and I cannot recall a
significant case where I felt people were better represented than they
are here .... I would say this has been the best representation that I
have seen." In Re: Waste Management, Inc. Securities Litigation, Civil
Action No. 97-C7709 (N.D. Ill.) (settled in 1999 for $220 million).
If you have sustained substantial losses in Vonage common stock, or if you have any questions about this Notice or this litigation, or with regard to your rights, please contact:
Michelle Principato, legal assistant
(800) 424-6690
(215) 875-3000
-or-
Lawrence J. Lederer, Esq.
Lane L. Vines, Esq.
Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103
(800) 424-6690
(215) 875-3000
If you prefer, you can email the firm c/o
