Not surprisingly, Vonage has revealed that customers who bought into the company's disaster of an IPO in May have refused to pay for for more than 1 million shares. Vonage had been pushing its customers to buy into the IPO, and they bought up about 4.2 million shares. Vonage said it's going to pursue collection of the money from those who reneged on their commitments to purchase stock since the price plummeted on IPO day. Vonage reported a second-quarter loss in its first earnings release, saying it had spent $11.7 million to cover the cost of about 25 percent of the shares in the customer program that customers didn't pay for. It also will have to pay an additional $6.2 million to underwriters under terms of the offering. Article [1] (WSJ sub. req.)
Links:
[1] http://online.wsj.com/article/SB115442843058523304.html?mod=telecommunications_primary_hs