Vonage Sued by Investors

When Internet phone company Vonage went public last week, it was supposed to touch off a new round of online euphoria. But something horrible happened. Vonage's shares closed down during its initial public offering (IPO) and then the company's stock lost 30 percent of its value in the first week. Here's the problem: As part of its New Age image, Vonage had given its users the chance to purchase 13.5 percent of its IPO shares. But because the stock has declined so sharply, those people will lose money. Many are threatening not to pay for their shares, and a group of shareholders is now suing the company. And, in a final nod to Bizarro world, Vonage is investigating whether it can sue those customers who don't pay for the shares they requested. Yikes.

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