Business

Vonage Tells SEC It's in Deep Trouble

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The Internet phone company Vonage has told the SEC that lawsuits have it teetering on the edge of bankruptcy. Verizon is suing Vonage for patent infringement. Since May 2006, Vonage's share price is off more than 80 percent.

STEVE INSKEEP, Host:

NPR's business report starts with legal troubles that threaten to bankrupt Vonage.

That company once promised to revolutionize the telephone industry, but now it's in trouble. Vonage told the Securities and Exchange Commission yesterday that lawsuits could cause the Internet phone company to hang up permanently. Verizon is suing Vonage for patent infringement. Since May, the company's share price has fallen by more than 80 percent.

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