GO
Loading...

Enter multiple symbols separated by commas

Vonage Shares Fall After Court Ruling

Shares in Vonage fell as much as 11% on Monday after a judge said it could not add new customers due to a finding that it infringed Verizon Communications'patents for making phone calls over the Internet.

Vonage shares dropped on investor uncertainty about the company, even though it received an emergency stay on the ban from an appeals court until that court can hear its request for a permanent stay. Earlier the stock traded as far down as $2.88, a new low.

"Although it is possible that Vonage could win its appeal, it is also entirely possible that the company's appeal is denied or ultimately lost," said Deutsche Bank analyst Greg Miller in a note to clients.

"In our opinion, absent a functioning 'work around' or a reversal of the District Court's ruling, we cannot envision how Vonage continues operations unimpeded," he added.

Miller said "it is virtually impossible to determine an appropriate valuation" on the stock.

Vonage went public in May 2006 at $17 per share, implying a market value of almost $2.7 billion. The shares have declined steadily since the initial public offering and closed Thursday at $3.37, with a market value of $522 million.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Hero miles for military members: Real estate magnate's plea

    Chairman of the Fisher House Foundation, Ken Fisher, discusses the Hero Miles program with CNBC's Dina Gusovsky. During Military Appreciation Month, Fisher is asking every traveler to donate 1,000 of their miles to replenish the Hero Miles programs that is in danger of running out.

  • Cramer shuts down this market's haters

    "Mad Money" host Jim Cramer on why this market can't stop, won't stop.

  • From the battlefield to the boardroom

    Your Grateful Nation is dedicated to helping Special Forces veterans enter the corporate world and Knot Standard provides complimentary suits to vets. Mad Money's Jim Cramer spoke with Rob Clapper, Your Grateful executive director; John Ballay, Knot Standard co-founder and president; Tej Gill, retired U.S. Navy Seal; and Darren McB, active duty U.S. Navy Seal.