As it prepares to go public in May, Internet phone service provider Vonage announces that it's setting aside shares for its customers - about 9,000 sign up.
Before Vonage can collect, shares plunge 30% during the first week of trading. Vonage first implies it will let its customers off the hook. Then it reverses course and says it "reserves the right to pursue payment" from customers.
The next week Vonage customers file a class-action suit alleging that the company pitched shares to customers in an attempt to offset resistance from institutional investors. By year's end, with the suit still pending, Vonage shares fall to about $7, from the offer price of $17.