Just three weeks after the voice-over-Net shop said it had reached a tentative $80 million settlement with Verizon, a Court of Appeals declined to rehear the case. By letting the original patent infringement decision stand, Vonage is now on the hook for the full penalty.
The latest court defeat comes a month after the Holmdel, N.J., telco settled a similar patent dispute with
by entering an $80 million licensing agreement. That deal calls for Vonage to pay Sprint $35 million for use of the calling technology to date and $40 million for future use. Another $5 million was tacked on as a prepayment charge.
Vonage had set aside $146 million to settle the patent defeats at Sprint and Verizon. As of June 30, the company had about $197 million in cash and, according to the company's most recent quarterly filing, about $253 million in total debt. Vonage has managed to burn through nearly $300 million of the $491 million in cash it raised with its IPO.
Vonage shares, which closed down 4% at $2.13 during regular trading, rose 3 cents to $2.16 in the after-hours session.