Vonage To Settle Shareholder Suit Over IPO

NEW YORK (AP) — Internet phone company Vonage Holdings Corp. said it has agreed to settle a shareholder lawsuit that alleged the company bungled its initial public offering in 2006.

The Holmdel, N.J., company announced the agreement late Thursday, saying the settlement amount would be covered by its directors and officers insurance policy.

The 2006 IPO was a disaster for investors. They bought the shares for $17 each, then saw the value fall 13 percent when they opened for trading on May 24. They were trading at 45.5 cents on Thursday morning, up 4.5 cents. ...