The Five Dumbest Things on Wall Street This Week

4. The Vonage Spin Machine

Vonage (VG) knows just the balm for burned investors.

The Holmdel, N.J., Internet phone company has been slammed since last month's initial public offering (IPO). Shares have lost almost half their value as customers flee and competitors swoop in. Verizon is the latest to pile on, claiming Vonage infringed seven Internet voice patents.

Vonage's $531 million IPO windfall didn't come cheap. Some users were infuriated when Vonage botched the customer stock allocation. Others sued after an investor Web site apparently fell short of regulatory standards.

Now, the papers themselves are giving Vonage a headache. Verizon's suit, filed June 12, came after the company reviewed Vonage IPO documents, The Wall Street Journal reports. Some wags suggest a Verizon courthouse victory could finish Vonage competitively.

Vonage responds that it "respects the valid intellectual property rights of others" and intends to defend itself vigorously. And how best to do that? Why, the serial press release issuer has hired Craig Streem of Aon (AON) as investor relations chief. Aon, of course, is no stranger to old Wall Street favorites such as blaming market conditions for its own shortcomings.

"We are very excited that Craig has decided to join Vonage," CEO Mike Snyder said in a statement Tuesday. "His vast experience in spearheading investor relations and communications efforts for several organizations will make Craig an invaluable member of our team."

One thing bodes well for Streem: Vonage's relations with investors can't get much worse.

Dumb-o-Meter score: 82. Selling the Vonage story will require a whole lot of spearheading, that's for sure.