Internet phone service provider Vonage Holdings , which was found to have infringed on three patents owned by Verizon Communications by a U.S. court, said its legal woes could lead to bankruptcy, according to a regulatory filing.
The filing with the U.S. Securities and Exchange Commission also detailed other risks from ongoing 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.
Vonage was ordered to pay $58 million plus royalties on future sales to Verizon after it lost the patent infringement case in March.
The court also barred Vonage from adding new customers, while it appealed the decision.
An appeals court allowed it to continue signing up new customers ahead of a hearing to consider a permanent stay on the bar on April 24.
Vonage Chief Executive Michael Snyder stepped down last week as the company said it planned to cut jobs and expenses by $30 million in 2007.
Shares of the the company have fallen 81% since it went public last year.