Everyone has been after Vonage it seems. First Verizon went after them and sent them reeling
, which ended in Vonage losing a lot of cash and having to change their business. They next were targeted by Sprint and even a defunct company
The dust is far from settling, with only now Sprint and Vonage reaching a settlement
. For violating Sprint's patents – much in the same way the courts found that they violated Verizon's patents – Vonage will be forced to pay out $80 million, in fees ranging from prior use of technology to future use of the same technology. Interestingly, a spokesperson for Vonage claimed this was “good news”:
"We believe this deal is good news for Vonage, our customers and our shareholders," Sharon O'Leary, Vonage's general counsel, said in a statement. "It allows us to put this litigation behind us and continue to focus on our core business by removing the uncertainty of legal reviews and long-term court action."
I can't fathom that losing nearly $150 million in less than two years is a good thing, particularly for a company that is exploring a relatively new market. Over the past year, the value of Vonage stock has dropped dramatically – and yet, settling this suit with Sprint caused their stock value to nearly double in a single day. Are they on the road to recovery, now?