shares recovered slightly Monday after the the Holmdel, N.J., telco vowed to fight its latest legal setback.
"Anyone who's counting Vonage out is making a huge mistake," CEO Mike Snyder said Monday in the wake of an injunction ruling that sent the stock
spiraling down 26% Friday.
A federal judge granted
request for an injunction against Vonage, two weeks after a jury had found that Vonage had infringed on three Verizon patents.
The judge is expected to enter a permanent injunction against Vonage on April 6, barring the company from using some of the technologies involved with its voice-over-Internet service.
Vonage says it will ask for a stay of the injunction, and if that fails, the company will file for an immediate stay with the federal court of appeals. Vonage also plans to appeal the March 8 jury verdict that found it had violated Verizon's patents.
"No matter what happens on April 6, the reality is this litigation is going to take years to make its way through the legal system," Vonage's chief lawyer Sharon O'Leary said in a press release. "We are optimistic the trial court judge will stay the injunction. If he doesn't, however, we're very confident the Circuit Court of Appeals will stay the injunction through the entire appeal process," O'Leary continued.
Verizon won a federal jury decision on March 8, which ordered Vonage to pay Verizon $58 million for damages and 5.5% in future royalties for its unauthorized use of some voice-over-Internet-protocol (VoIP) technologies.
At the time, Vonage said it was "equipped to handle" the costs if it's indeed forced to pay the fine and royalty charges. The company also said at the time that it was confident that it could block a potential injunction and successfully appeal the ruling.
Vonage shares were rising 39 cents, to $3.39, in midday trading Monday.