Monday the market had overreacted to a federal judge's decision that would bar the Internet telephone company from using technology covered by Verizon Communications Inc.'s patents.
Holmdel, N.J.-based Vonage said it was confident it could meet the needs of its more than 2.2 million subscriber lines. It called the decision in the U.S. District Court for the District of Virginia "one small step in what is sure to be a long legal battle."
New York Stock Exchange-listed Vonage shares shed $1.05, or 26 percent, Friday to close at $3. In morning trading Monday, shares were up 18 cents at $3.18. The shares were first sold to the public in May for $17 each.
"The fact is we've been preparing for this verdict and the possibility of an injunction for months," Chief Executive Mike Snyder said. "For the market to react the way it did to the recent rulings shows an unfortunate lack of understanding of the judicial/appellate system, a lack of appreciation of Vonage's resourcefulness, or, perhaps, both."
The judge said he would permanently bar Vonage from using the Verizon technology but delayed signing the order until April 6 to consider Vonage's request for a stay while it appeals the jury verdict.
If the judge issues the permanent injunction, Vonage said Monday it will immediately file an appeal requesting a stay of the order.
Verizon sued Vonage in June, saying it infringed on five patents, covering processes like connecting Internet calls to ordinary phone networks and those that allow features such as call forwarding. Verizon claimed it lost hundreds of thousands of customers to Vonage while it used Verizon's patents.
source:www.businessweek.com
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