Class Action Suit Filed

Posts: 33 · Vonage Forum Junior Joined: Jun 01, 2006 Posts: 33

Your responses all make sense. I think they are valid counterpoints.

Ill jkust point out one flaw (about the allocation). Here is the section from the terms and conditions that discuss re-allocation. Or does that not matter because it doesnt fit your point.

"Failure to make timely payment for all shares that Vonage agrees to sell to you may result in your loss of shares and an obligation to Vonage for any unsold portion of those shares." That is directly from the terms and conditions. So does the absense of a "pentalty" suggest that this is an exclusive remedy for Vonage? Maybe... Get it? They cant rewrite the rules now.

And here is the relevant arbitration clause:

This agreement contains a pre-dispute clause. By signing an arbitration agreement (i.e., by submitting a conditional offer through Smith Barney in the Vonage Customer Directed Share Program) the parties (i.e., the client and Smith Barney) agree as follows:

* All parties to this agreement are giving up the right to sue each other in court, including the right to a trial by jury, except as provided by the rules of the arbitration forum in which a claim is filed.
* Arbitration awards are generally final and binding; a party's ability to have a court reverse or modify an arbitration award is very limited.
* The ability of the parties to obtain documents, witness statements and other discovery is generally more limited in arbitration than in court proceedings.
* The arbitrators do not have to explain the reason(s) for their award.
* The panel of arbitrators will typically include a minority of arbitrators who were or are affiliated with the securities industry.
* The rules of some arbitration forums may impose time limits for bringing a claim in arbitration. In some cases, a claim that is ineligible for arbitration may be brought in court.

Client may elect which of these arbitration forums shall hear the matter by sending a registered letter or telegram addressed to Smith Barney at 77 Water Street, New York, N.Y. 10005, Attn: Law Department. If client fails to make such election before the expiration of five (5) days after receipt of a written request from SB to make such election, SB shall have the right to choose the forum.

No person shall bring a putative or certified class action to arbitration, nor seek to enforce any pre-dispute arbitration agreement against any person who has initiated in court a putative class action; or who is a member of a putative class who has not opted out of the class with respect to any claims encompassed by the putative class action until: (i) the class certification is denied; (ii) the class s decertified; or (iii) the person is excluded from the class by the court.

Posts: 476 · Posted: Fri Jun 09, 2006 9:00 am Post subject:

audiotron wrote:

Ill jkust point out one flaw (about the allocation). Here is the section from the terms and conditions that discuss re-allocation. Or does that not matter because it doesnt fit your point.

"Failure to make timely payment for all shares that Vonage agrees to sell to you may result in your loss of shares and an obligation to Vonage for any unsold portion of those shares." That is directly from the terms and conditions. So does the absense of a "pentalty" suggest that this is an exclusive remedy for Vonage? Maybe... Get it? They cant rewrite the rules now.

"...an obligation to Vonage for any unsold portion of those shares." The obligation represented in this part of the sentence is yours. Your obligation to pay Vonage for the unsold portion of those shares (which would likely be all of them, I'm guessing). I fail to see how you're viewing this as an "out." There's no "pentalty" [sic] listed, true, which may mean they aren't going to hit you with any fees above and beyond the value of the stock at the time of IPO.

audiotron wrote:

And here is the relevant arbitration clause:

This agreement contains a pre-dispute clause. By signing an arbitration agreement (i.e., by submitting a conditional offer through Smith Barney in the Vonage Customer Directed Share Program) the parties (i.e., the client and Smith Barney) agree as follows:

It appears the arbitration agreement was between you and (in this case) Smith Barney. Since Vonage has agreed to indemnify the underwriters it would not be Smith Barney coming after you for their money, but Vonage. Is there a similar arbitration agreement with Vonage?

Posts: 12 · Vonage Forum Associate Joined: Jun 01, 2006 Posts: 12

And to what effect is the latest tidbit of news?

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B6BC672D2%2DC271%2D420A%2DB309%2DCB87318F5EF3%7D&siteid=mktw&dist=nbs