Vonage was found guilty of illegally using Sprint’s Internet phone patents, and now owes the carrier $69.5 million in damages, according to Dow Jones Newswires. More worrisome for Vonage is that an injunction could soon bar it from offering Net-based phone service altogether.
News of the Kansas City federal jury’s verdict sent an already floundering Vonage stock to a record low $1.30 close on Tuesday, down 34 percent. This is not the first of Vonage’s legal troubles: in March, another jury ruled that Vonage had illegally used Verizon patents, and ordered a payout of $66 million to that phone giant, plus a royalty based on future revenues. Vonage is appealing both cases.