Vonage 2010 Annual Report Download - page 25

ITEM
1
B.
U
nr
eso
lv
ed S
t
a
ff
Co
mm
e
nt
s
Not a
pp
licable.
ITEM
2.
P
ropert
i
e
s
T
he
f
ollowing is a summary o
f
our o
ff
ices and locations
:
Location Business Us
e
Sq
uar
e
F
oota
ge
L
ease
Ex
p
iratio
n
D
a
t
e
H
olmdel, New Jersey
C
orporate Headquarters, Network Operations, Customer Service, Sales and Marketing
,
an
dAd
m
i
n
i
strat
i
on
3
50
,
000 201
7
L
ondon, United Kingdom Sales and Marketing, Administration 3,472 2015
Atlanta, Georgia Product Development 2
,
588 201
1
T
e
lA
v
i
v,
I
srae
lA
pp
li
cat
i
on
D
eve
l
opment 5,866 2015
3
61
,
92
6
We believe that the
f
acilities that we occupy are adequate
f
or our current needs and do not anticipate leasin
g
any additional space.
ITEM
3
.Legal Proceeding
s
F
rom t
i
me to t
i
me, we may
b
ecome party to
li
t
i
gat
i
on an
d
s
ubject to claims, normall
y
incidental to the ordinar
y
course o
f
ou
r
bus
in
ess
.
Li
t
i
gat
i
o
n
C
onsumer
C
lass Action Litigations.
W
e were name
di
n
s
everal purported class actions venued in
C
alifornia, New Jer
-
s
ey, and Washington alleging a wide variety of deficiencies wit
h
r
espect to our
b
us
i
ness pract
i
ces an
d
mar
k
et
i
ng
di
sc
l
osures.
These class actions
,
on behal
f
o
f
both nationwide and stat
e
c
lasses, generally alleged that we delayed and
/
or refused to
a
llow consumers to cancel their Vonage service;
f
ailed to dis-
c
lose procedural impediments to cancellation; failed t
o
ad
equate
l
y
di
sc
l
ose t
h
at t
h
e
i
r 30 or 60-
d
ay money
b
ac
k
guaran-
tee
did
not g
i
ve consumers 30 to 60
d
ays to try out our serv
i
ces;
s
uppressed and concealed the true nature of our services and
d
isseminated false advertising about the quality, nature an
d
terms of our services; imposed an unlawful earl
y
termination fee;
a
nd invoked unconscionable provisions of our Terms of
S
ervic
e
to the detriment of customers.
O
nMa
y
11, 2007, plaintiffs in on
e
a
ction petitioned the Judicial Panel on Multidistrict Litigation
(
the
“
Panel”
)
seeking transfer and consolidation of the pending
a
ctions to a single court for coordinated pretrial proceedings. I
n
a
n
O
rder dated August 15, 2007, the Panel transferred the pend
-
ing actions to the United
S
tates
C
ourt for the District of New
Jersey, captioned In re Vonage Marketing and
S
ales Practices
L
itigation, MDL No. 1862, Master Docket No. 07-
C
V-3906
(
U
S
D
C
, D.N.J.
)
.
O
n
O
ctober 1, 2007, counsel for one group o
f
p
laintiffs moved before the
C
ourt for
C
onsolidation an
d
Appointment of
C
o-Lead
C
ounsel of the actions, and requeste
d
time to file an Amended
C
onsolidated
C
omplaint.
O
n
November 6, 2008, the Court entered an Order Grantin
g
Con-
s
olidation and A
pp
ointment of Co-Lead Counsel, and ordere
d
that a consolidated Complaint be filed within 45 days, which
C
omplaint was filed on December 19, 2008. On February 6
,
2
009, we filed a Motion to Com
p
el Arbitration. On Se
p
tember 1,
2
009, the Court denied without
p
re
j
udice the Motion to Com
p
e
l
Arbitration. On December 2, 2009, we filed a Renewed Motion t
o
C
ompel Arbitration. Briefin
g
on the motion was completed in
F
ebruary 2010. The parties en
g
a
g
ed in limited discovery. O
n
Jul
y
8, 2010, the Court requested that the parties submit
s
upplemental letters to the Court on or before Jul
y
30, 2010,
a
ddressing the relevance o
f
recent decisions by the Unite
d
S
tates Supreme Court and the United States Court of Appeal
s
f
or the 3rd Circuit regarding arbitration provisions and the par-
ties
f
iled those submissions.
O
n
S
eptember 23, 2010, the parties reached a propose
d
s
ett
l
ement t
h
at
i
nc
l
u
d
es a re
l
ease an
ddi
sm
i
ssa
l
w
i
t
h
pre
j
u
di
c
e
o
f all consumer claims against us and will provide a settlemen
t
b
enefit of
$
4
,
750 into a common fund for the benefit of clas
s
members. The common fund will include all awarded fees
,
c
osts, and expenses
(
including attorneys’ fees and costs
)
, cer
-
tain costs to provide notice of settlement, administrative
e
xpenses, and incentive awards, if an
y
, with the remainder of
the common fund to be distributed to members of the clas
s
p
ursuant to a plan of allocation among class members.
On
S
eptember 28, 2010, the
C
ourt entered a Joint
S
tipulation sta
y-
i
ng t
h
e procee
di
ngs an
d
term
i
nat
i
ng t
h
e pen
di
ng
R
enewe
d
Motion to
C
ompel Arbitration.
O
n December 23, 2010, the par
-
ties filed the proposed
S
ettlement Agreement with the
C
ourt.
On
January 3, 2011, the
C
ourt granted Preliminary Approval of the
S
ettlement and set a schedule whereb
y
notice of the propose
d
s
ettlement, the final hearing date and other interim deadlines i
s
to be provided to potentially eligible plaintiffs. A final hearing on
1
8
VO
NA
G
E ANN
U
AL REP
O
RT 2010