Appeals Court Lifts Vonage Injunction

After U.S. District Court Judge Claude Hilton ruled on Friday morning that Vonage Holdings Corp. (NYSE: VG) would be banned from signing up new customers, a federal appeals court intervened late Friday afternoon and granted Vonage a temporary reprieve.

According to a press release from Vonage, the company had applied for and received an emergency stay from the appeals court immediately after the district judge's ruling Friday morning. (See Vonage Wins Temporary Stay.) The appeals court will make a final decision this week whether to confirm or overturn Hilton's ruling from Friday morning.

Vonage attorney Roger Warin had argued on Friday that the company loses 650,000 customers annually and that without being able to sign up new ones, Vonage would vanish into thin air very quickly.

So, for now, the court has applied a band-aid to Vonage's wounds, but in a matter of days, it could confirm Friday's ruling and bring Vonage right back to where it started.

U.S. markets were closed on Friday, so Vonage's stock was not immediately affected. However, the stock has opened down 13.95 percent ($0.47) to $2.90 this morning on the New York Stock Exchange (NYSE) .

— Raymond McConville, Reporter, Light Reading

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