A couple of weeks ago, we reported that Sprint ordered Vonage to cough up almost $70 million plus 5 percent of future revenue for patent infringement damages. Today the fiasco has been settled for $80 million, straight up and Sprint has agreed to license Vonage some of its VOIP technology in return.
For a company like Vonage that’s been hemmoraging money due to legal misunderstandings, it’s a positive sign that after settling with Sprint, its stock went up 74% to $2. That’s still far less than Vonage’s IPO price of $17 per share. Sprint’s stock went down 1.5% to settle at $18.73 per share.
Sprint and Vonage settle patent dispute [Reuters]