New Email from Smith Barney

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

I just got this email. I wonder what that means... That they will no longer provide access and that they can seek damages. Are their damages the difference in value? What about arbitration? I agreed to the arbitration clause. What other losses are they talking about? This is wierd.

We have not yet received payment on the shares of Vonage common stock that you purchased in the Vonage IPO. Payment on these shares was due on Tuesday, May 30, 2006. Because you have requested more time in order to make payment for your shares or because we have not received an indication from you regarding your intention to pay, the payment deadline for the shares of Vonage common stock that you purchased has been extended. Payment on these shares will be due by Tuesday, June 13.

Please be aware that if we have not received full payment on the shares you purchased by the close of business on Tuesday, June 13, after that time you will no longer have access to these shares through your limited purpose account. In addition, we or Vonage still may seek to recover payment from you for these shares or other losses.

Posts: 243 · Vonage Forum Master Joined: Jan 18, 2004 Posts: 243

What does it mean? It means that they are being nice and are giving you additional time to pay for the shares you agreed to and are obligated to buy.

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

Dont you get it? I never agreed to buy them. I put an indication in that I was interested. I was never given the opportunity to see what I was buying. How can I agree to buy something I never saw?

So I am not obligated to buy. And if I am, its not for the party seeking $$$ to tell me. It is for an arbitrator to make that determination BASED ON ALL OF THE FACTS.

Sheesh.

Posts: 243 · Vonage Forum Master Joined: Jan 18, 2004 Posts: 243

Right... you must not have read the statement(s) on the vonageipo.com website during the login process that says

"The posting of this information on this website constitutes the underwriters' acceptance of your conditional offer to purchase shares of Vonage common stock. Accordingly, you are now obligated to purchase the number of shares you have been allocated. You may have been allocated fewer shares than you conditionally offered to purchase, or none at all. "

or this statement which you must agree to before your allowed access

"By clicking here, I consent to receive information relating to the Vonage Customer Directed Share Program and my participant account through information posted on this website. While information may be sent to me via e-mail, I understand that I should not expect to receive any notices or information in any manner other than through this website. "

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

Oh I read that. And I know what you are attempting to do. But that still doesnt get you there.

The fact is that the terms of our "deal" changed sooo materially that the essential purpose fails. That is, a reduction of a few shares is one thing. But 1/3 of the allocated shares is a whole other ball game.

How can I possibly agree to something that is such an unknown. Even if you agree to that statement, it has no legal weight. Its basic contract law. You cannot agree to something that is so uncertain that the essential purpose of the contract fails. You can write whatever you want but the fact remains that I did not agree to 1/3 allocation coupled with the fact that my allocation showed zero... I have no contract.

Had i seen I was allocated 1/3 I would have cancelled in that so-called "alloted time" (the time in which users were given the opportunity to rescind.

Posts: 476 · Posted: Tue Jun 06, 2006 4:29 pm Post subject:

Best of luck with the "I didn't agree to this even though I clicked through all the screens indicating that I agreed to this" argument. You may not have understood all the terms you were agreeing to, but the fact that you got as far as an allocation indicates that you did, indeed, accept the terms presented.

Posts: 243 · Vonage Forum Master Joined: Jan 18, 2004 Posts: 243

yeah okay... goodluck with that then.

Anyone who has ever participated in an IPO knows that the chances of ever getting your entire allocation requested is slim. The website clearly stated that you could get less than what you offered to buy and that the only way the offer would be void is if the price came in below or above the expected range. You had to assume that you would get your entire allotment at the high end price. (You agreed to the terms of the conditional offer that asked what is the most your willing pay and how many shares at that price in blocks of 100 up to 5000 shares).

So, again goodluck with your argument. You don't have one.

Posts: 62 · Full Forum Member Joined: Apr 29, 2005 Posts: 62

I'm still not paying

Any other IPO deal would have demanded payment at the set due date. The fact that they are moving the date to give us more time sounds like they are just trying to collect all the can and then they will do something with the left over folks. If this was any other deal, the credit collection agency would have already been contacted due to a lack of payment.

Posts: 476 · Posted: Tue Jun 06, 2006 7:07 pm Post subject:

ckudrna wrote:

If this was any other deal, the credit collection agency would have already been contacted due to a lack of payment.

Not necessarily. Selling the debt to a collection agency means you don't get anywhere near its face value. They would likely try to collect before selling off the debt. In fact, that's usually a last resort after a debt has gone over 90 days old.

The people who haven't paid, though, should be aware that at 30 days this will likely begin to show up on your credit report - regardless of what is going on with class action suits or arbitration or whatever.

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

I also got scammed and have no intention of paying. You can't buy stock by clicking some buttons over the interenet. I thought I was just seeing if I could get some shares and expected that I would then have to go back and do the normal steps in buying stock. I never did any of those things. The one thing I don't seem to understand is how I even was eligible to get shares. Below is from there own "terms and conditions"

"Carefully review the prospectus relating to the initial public offering of Vonage's common stock. You must indicate that you have had the opportunity to review this prospectus. A copy of the prospectus is available by clicking on the prospectus link on the bottom of this page. If the prospectus is amended, a new version of the prospectus will be posted on this website. You will need to review any amendments to the prospectus in order to remain eligible to participate in the Vonage Customer Directed Share Program."

Well if I never went back to review the amended prospectus. How did I remain eligible.? I was shocked to learn I owned this stock and called UBS immediately after finding out to which they told me I "needed to take my loss". Well thats just not gonna happen since I never agreed to buy the stock nor did I follow there own terms and conditions.

As for them sending collections after me. Well that to would be illegal. Under there own rules. All disputes must go to arbitration. So if thats what they want to do. Lets go for it. From what I can tell there are so many flaws and illegal procedures with this IPO that they could never win any disputed purchase. For the record I have not received any notices from UBS demanding payment since I called them to tell them I am not paying. If they do call. The first thing I will ask them for is a copy of my signed forms along with my suitability questionnaire approved by their compliance department. All things necessary to buy stock. All things they will not be able to produce since it was never done.