Contingecy plans - what if vonage goes down bad?

Posts: 233 · Posted: Thu Apr 19, 2007 7:29 am Post subject:

While this is a technical discussion on what to do for a "plan B" don't forget what these companies usually do. I worked for a Fortune 500 company that had to posture itself for market fluctuation and I always got two letters each year. One said "Dear Employee, Things are awful and we won't be able to give a large raise. The horizon is difficult." Since I was a stockholder I got a second letter, "Dear Stockholder, Things are wonderful. Financial outlook is great." I'm not saying Vonage is in perfect shape, but it is to their advantage to be cautious in their government filings. Especially when dealing with lawsuits.

I would pay attention to what the financial reports say, but I personally haven't hit the panic button. I just don't want to ever be part of Verizon again. I wouldn't jump ship until it happens. It isn't unsinkable, but sinking isn't likely and if it does sink you will have time to abandon ship.

Posts: 2257 · Posted: Thu Apr 19, 2007 7:51 am Post subject:

galion -

Excellent post.

This is a filing on a 10K. On a 10K, companies are required to disclose any and all reasonable risks to the company, lest they not disclose such events and one happen - that would open them to a lawsuit.

These are "safe harbor" statements. If Vonage goes belly-up, no one can say they were not warned. On the other hand, I'm surprised more companies don't disclose that the Earth could be consumed by a renegade giant space weasel, and document that interference with business that it might cause (though, I guess that would negate any lawsuits since the human race would be extinct, so there's not much purpose in disclosing it).

In all seriousness, Vonage being sucked under by a lawsuit is possible, as you have stated, but somewhat unlikely. I expect Vonage is playing the violin on that point right now so they can extend the stay on their injunction. If the injunction is put into place, they may very well go bankrupt before the appeals court makes a decision, and the courts generally do not want a company to win by default through the bankruptcy of another company.

Posts: 2 · New Forum Member Joined: Apr 18, 2007 Posts: 2

The one where you say you don't want to go back to Verizon. Me too!!! They screwed me over so many times over the years that it was a JOY to be able to dump them. And I told them so in a polite but to the point letter. They STILL have the attitude that they are the only phone company and how can they screw us over today!!! Good luck Vonage!!!