New Email from Smith Barney

Posts: 6 · New Forum Member Joined: May 23, 2006 Posts: 6

Kaushal wrote:

codyprime wrote:

maxwell1 wrote:

... You can't buy stock by clicking some buttons over the interenet. ... .

Holy crap! Somebody better tell this to Ameritrade!

Ameritrade take the cash from your account then buy shares for you. This IPO and Ameritrade is not apple-to-apple comparison...

Yes, it is an apple-to-apple comparison. Especially with regards to his point - that you can't just "click" to agree to things and buy stock. That is exactly how most online brokerage accounts operate - from opening it to funding it - click click click. Also, you can buy on margin just by "clicking".

I'm sorry for your loss, I avoided it by luck (requested 200, got 0), but some of these arguments that have been posted don't hold water.

Posts: 1 · New Forum Member Joined: Jun 08, 2006 Posts: 1

Hi - Anyone want to talk about that Smith Barney letter, buying shares in the IPO? I'm a reporter with Bloomberg News looking for folks just like you to talk on the record about their experience with Vonage's IPO. - Kyle Foster

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

Anyone else receive a letter from their selected DSP account representative? Did anyone else notice that on the back, there's a clause that states that if you dispute the accuracy of the transaction described in the notice, you must alert the investment firm know within 3 days of receipt of the letter?

I'm calling my reps.

Posts: 7 · New Forum Member Joined: May 31, 2006 Posts: 7

I did call SSB and told them that "I never agree to buy 200 shares at $17. I did made an conditional offer for 500 but it showed 0 allocation night before and morning of IPO. I was feeling lucky as I saw free-fall of VG on IPO day. After hearing from folks, I rechecked the account at vonageipo and found 200 shares." SSB reps said they have taken a note of it.
Later I got call from SSB also reminding that I owe $3400 by 13-June-06. I re-told them what I said earlier. I also said that if I knew in advance about shares allocation, I would have place limit order at $16. Reps replied that online trading was not enabled for these accounts.
So what is the game here ???

Posts: 6 · New Forum Member Joined: Jun 09, 2006 Posts: 6

There is no arbitration for a cash settlement issue. You owe cash for a commitment to purchase. You will soon find out that this is debt collections, not an arbitration issue.

All your technical "I did not read the prospectus" and "You cannot buy stock with a mouse click" mumbo-jumbo aside, the truth is that you are welching on a commitment.

Think about it. Is this the kind of person you really are?

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

KeithR. You could not be farther from the truth. The terms clearly state that no legal action may take place without arbitration. Its not a debt collection issue. I am disputing that I owe the money. What happens when there is a dispute? Hmmm??? COURT!

I dont know what country you live in, but, here, in the United States, because someone says you owe money doesnt make it so. Thats why there is a legal process to follow.

I dispute the fact that a valid contract existed.

Moral and legal committments are different. You keep arguing the moral side (e.g., "Welch, committment, is this the kind of person you are"). My point is that the rules were not followed and, in fact, i was duped. Why do you have such a problem with that? Why cant you admit that maybe, just maybe, the SAME rules that you claim I should be held to were NOT held to by Vonage. And maybe, just maybe, because of that no valid contract exists?

You make it sound like I bought a car and refuse to pay and that I am "stealing."

Posts: 6 · New Forum Member Joined: Jun 06, 2006 Posts: 6

Audio,

Can't agree with you more. I also feel like I was duped. I did not even know I owned this thing for for days. I just happened to read an article in the business section about the disaster and out of curiosity went back to the ipo site to see if there was more info their. I was shocked when the screen showed me that i owed $3200. The record will show that I was on the phone immediately to UBS to complain that I never followed through and therefore should have never been given shares. There was response was first tough luck. Then when I told them tough luck to them. They said a manager would call me. Never happened. Called twice more to get the same response. Never got that call back. Well tough luck to them. They are going to have to take me to arbitration for the money. If they win. Then I will pay. But there is no way I am giving them the money first since I don't feel I own it to begin with.

Posts: 6 · New Forum Member Joined: Jun 09, 2006 Posts: 6

OK, Audiotron,

First, I also signed up for the IPO. I knew I was on the hook. I read the stuff I was clicking on. However, I happen to be a Registered Representative of a broker-dealer (BD), so I had to get the BD's permission to follow through. My BD denied permission, so I withdrew my offer.

I have no patience for your goofy excuses. You can wiggle and squirm all you want, but in your heart you know you owe a debt.

The lure of IPO riches enticed you to make an offer. The IPO bombed. You made a mistake. Admit it. Pay up. Move on.

Posts: 292 · Vonage Forum Master Joined: Oct 08, 2004 Posts: 292

audiotron wrote:

KeithR. You could not be farther from the truth.

KeithR has hit the bulls-eye, you just can not handle the truth when you hear it.

Posts: 13 · Vonage Forum Associate Joined: Dec 31, 2003 Posts: 13

KeithR,
You're right on target. All of these people want to find some loophole to let them out of their obligation. None of this wishing will make it so. I have been through this identical process with another IPO backed by Smith Barney and I can assure you that they know what they are doing. They have their legal bases covered.

For the people that don't pay, they will end up being chased for the money. Those who choose to go to arbitration will most likely find out that you agreed to arbitration in a city other than where you live and it will be your responsibility to go there to try your case. If you don't show, you lose by default. The arbitration clause is there for their advantage, not yours.

If you got shares in the IPO, man-up and pay your debt.