Internet phone company Vonage settled a patent lawsuit brought against it by AT&T. AT&T claimed that Vonage infringed with its patents by using packet-based telephony products, which allow voice conversations to be carried over the Internet.
Since going public in 2006, Vonage was hit by multiple lawsuits by telephone service providers. It settled a suit with Sprint Nextel and another one with Verizon Communications in October.
Vonage did not disclose the nature of the settlement but in November the company offered to pay AT&T $39 million over five years. (See: Vonage Discusses Settlement). Vonage hopes that by settling it will be able to become profitable and that its stock price will rise. When the company went public in 2006 its stock sold for $17 a share. In September of this year Vonage stock fell to as low as $0.89. Ever since negotiating with the companies that brought the patent infringement lawsuits, Vonage stock has increased. The stock sells for just over $2 as of this morning.