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Time For Vonage To Throw In The Towel

Is there anything going right for Vonage? Here's the latest bad news: It is being sued by Klausner Technologies for alleged patent infringement, which is asking for $180 million in damages and royalties.
This comes after multiple other suits, from Verizon, from investors, and from anyone who can talk on a telephone, it seems.

The stock is trading at $7.45 at the moment, well under the $17 IPO price. And it's heading only one way -- south.

The suit is bad news for the company, but the truth is, in the long run, it won't really matter. Vonage can't succeed, suits or no suits. Increasingly, VoIP calls are free, or nearly free. Big cable companies and big telcos will soon start using voice as a loss leader, to get people to sign up for much more lucrative video subscriptions.

So if you're investor, it's probably time to cut your losses. And if you're a Vonage employee...well, it just might be time to polish up your resume, so you can jump before you're pushed.