Vonage Holdings might end up filing for bankruptcy

Vonage Holdings might end up filing for bankruptcy

VoIP service provider Vonage Holdings Corp. has said in a regulatory filing that their legal hassles might end up resulting in them filing for bankruptcy.

The company is involved in a legal mess in relation to patent infringement. The courts have found them guilty of infringing on three patents owned by Verizon Communications.

Vonage has already admitted that they have failed to find out a logistically possible way around the patents owned by Verizon.

The company also talked about other risks from this ongoing litigation which includes possible interruption of service, an inability to repay its debt and a decline in its stock.

Vonage is also due to Verizon $58 million plus royalties on future sales to Verizon as part of the court ruling.