Vonage has been ordered to pay Verizon $120 million. The settlement was due to a patent infringement case that settled back on October 25, 2007. This case was won by Verizon with both a jury verdict and also an appeal. The total amount to settle was left open until the appeals court was able to decide on Vonage’s request for consideration. The court has since denied the request and Vonage will now have to pay $117.5 million to Verizon and another $2.5 million dollar to charity.
Vonage is currently reporting they may begin to run out of money as early as December 2008 and plan to try and restructure the debt. In an attempt to cut expenses Vonage has already fired 10% of their staff and trimmed their advertising budget.
“We were not surprised, but disappointed that the court denied our request for a rehearing of the case,” Vonage spokesman Charlie Sahner said in an e-mailed statement. We are pleased to continue putting litigation behind us.”
Vonage has been in court for what seems like forever, this settlement is just another in a long line and is starting to be the norm. It should be interesting to see how Vonage can work back up.
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