A settlement in the amount of $4.75 million has been reached in a class action lawsuit involving Vonage services that may affect you if you were a Vonage subscriber in the United States, its possessions or territories, during the relevant time. This Notice explains the lawsuit, the proposed Settlement, your legal rights, what benefits are available, who may be eligible for those benefits, and how to get them.

Judge Wolfson of the United States District Court for the District of New Jersey is overseeing the consolidated class action. This case is known as In re Vonage Marketing and Sales Practice Litigation, MDL No. 1862, Civil Action No. 3:07-cv-03906 (U.S. District Court for the District of New Jersey).

The people who sued are called “Named Plaintiffs” or “Class Representatives,” and the companies they sued, Vonage America, Inc., Vonage Holdings Corp., and Vonage Marketing Inc. (now Vonage Marketing LLC), are called “Defendants” or “Vonage.” Vonage is a company that provides voice and data communications services.

On December 4, 2006, certain Plaintiffs filed a class action lawsuit in the United States District Court for the District of New Jersey against Defendants Vonage America, Inc., Vonage Holdings Corp., and Vonage Marketing Inc.(now Vonage Marketing LLC) (collectively, “Vonage”), which was consolidated with other similar actions on August 15, 2007. Plaintiffs asserted that Vonage misrepresented the scope of its promotional one month free and money back guarantee offers, improperly collected certain disconnection, cancellation or termination fees, and continued to charge subscription fees despite requests for cancellation, all in alleged violation of pertinent law. Plaintiffs sought relief for breach of contract, breach of the implied covenant of good faith and fair dealing, violation of New Jersey and California consumer protection laws, and unjust enrichment.

Vonage denies any wrongdoing. The proposed Settlement is not an admission of wrongdoing or an indication that any law was violated or that Vonage’s practices are illegal or improper in any way. Vonage has entered into the proposed Settlement to avoid the further expense, inconvenience, burden and uncertainty of the lawsuit.

The Court has found that class action treatment is the superior method for the fair and efficient resolution of this lawsuit by settlement. In a class action, one or more people called “class representatives” (who in this case are Budd Nahay, Robert Starrett, Alex Nevelson, Eric Terrell, Darlene Pennock, and Francesco Trama) sue on behalf of people who have similar claims. The people with similar claims are called the “class” or “class members.” A court must determine if it will allow a lawsuit to proceed as a class action. If it does, a trial of the claims then decides the lawsuit for everyone in the class, or the parties may settle without a trial.

The Court has not decided in favor of the Class Representatives or Defendants. Instead, the parties on both sides agreed to settle this case to avoid the cost and risk of a trial. The proposed Settlement is not a determination that any law was violated or that Defendants did anything wrong. Defendants deny all of Plaintiffs’ claims in this case. The Class Representatives and their attorneys think the proposed Settlement is best for the Settlement Class.

The Court will review the terms of the proposed Settlement and hold a hearing on the fairness, reasonableness and adequacy of the settlement. If the Court approves the Settlement, then Defendants are released from any liability based upon the alleged conduct that is the basis of the lawsuit.

The Court decided that the Class includes anyone in the United States who subscribed to Vonage services on or before January 3, 2011, with certain exclusions, and was unable to receive a full month of free service, did not receive a full money back guarantee under certain circumstances, was charged disconnection fees after cancellation or paid for monthly service after requesting cancellation.

Vonage will reimburse Class Members for valid claims under the terms and conditions of the Settlement Agreement. Reimbursements will be made from a settlement fund to be funded by Vonage in an amount of $4.75 million. This fund will pay fees and costs (described below) before payment of benefits. One fifth of the remaining fund (after payment of fees and costs) is dedicated to Category 1 benefits, as described in number 8 (below). The remaining four fifths of the remaining fund (after payment of fees and costs) is dedicated to the other three benefits, as described in number 8 (below). If the portion of the fund for any of the benefits is insufficient to pay claims in full, claims will be reduced fairly and equally on a pro rata basis. If all claims are paid in full and the fund is not exhausted, any remaining monies will be distributed to charitable organizations designated by Class Counsel and Vonage’s Counsel and approved by the Court. Full details on the distributions of the settlement fund are set forth in the Settlement Agreement.

To make a valid claim for reimbursement, you must complete the Claim Form online or submit it by mail (see detailed instructions below) attesting to the unreimbursed charges assessed on your account by Vonage and, upon request from the Settlement Administrator, you may be asked to provide documentation supporting your request for reimbursement.

The proposed Settlement provides four categories of relief. Class Members may be entitled to receive benefits from more than one category, although no Class Member will be entitled to receive both the benefit contained in Category 1 (“One Month Free Claims”) and Category 2 (“Money Back Guarantee Claims”). The categories and benefits, prior to any pro rata reduction as set forth above, are as follows:

CATEGORY 1 – ONE MONTH FREE CLAIMS: Class Members who were not able to receive a full free promotional month of service: Class Members whose promotional one or two free month(s) of service began on the date their accounts were administratively opened, and not the date full service was available for use (for reasons including, but not limited to, delays associated with the porting of an existing telephone number and the shipping and receipt of equipment) shall be eligible to receive $10.00 (subject to possible pro rata reduction) with submission of an eligible claim.

CATEGORY 2 – MONEY BACK GUARANTEE CLAIMS: Class Members who were not able to receive full service during the money back guarantee period: Those Class Members who cancelled their subscription between thirty-one (31) and forty (40) days after signing up with Vonage (or between sixty-one (61) and seventy (70) days for Class Members who signed-up between August 15, 2007 and February 3, 2008), who were charged and paid a monthly service fee or equipment charges, and who did not receive a refund or credit from Vonage for such fees or charges shall be eligible to receive payment for such fees and charges (refund not to exceed $25.00 for the monthly service fee and $80.00 for equipment charges, subject to possible pro rata reduction) with submission of an eligible claim. Class Members making such a claim under this benefit shall provide the date of cancellation and the amount and type of charges paid by them that were not otherwise refunded or credited by Vonage.

CATEGORY 3 – DISCONNECTION FEE CLAIMS:Class Members who were charged disconnection, termination or cancellation fees: Class Members who were charged and paid any termination, cancellation, or disconnection fees for cancelling Vonage service and did not receive a refund or credit from Vonage for such fees shall be eligible to receive payment for those fees (refund not to exceed $40.00, subject to possible pro rata reduction) with submission of an eligible claim. Class Members making such claims shall provide the date of cancellation and the amount of termination, cancellation or disconnection charges paid by them that were not otherwise refunded or credited by Vonage.

CATEGORY 4 – POST-CANCELLATION SERVICE FEE CLAIMS:Class Members who were charged monthly service fees after cancellation: Those Class Members who requested cancellation of their subscription with Vonage, but were thereafter charged and paid regular monthly service fees for services they did not use after their cancellation request, that were not otherwise refunded or credited by Vonage, shall be eligible to receive payment for such service fees (refund not to exceed $50.00, subject to possible pro rata reduction). To be eligible, Class Members must submit an eligible claim and a sworn declaration of (1) the attempted cancellation and (2) that Vonage’s services were not used thereafter. The sworn declaration shall provide the details of the efforts of cancellation, including the date(s) and method(s) of cancellation. A Class Member will be deemed ineligible for this benefit if records show that he or she continued to use Vonage’s service after the date he or she sought to cancel service.

If you qualify for one or more of the benefits described above, you must complete and submit a Claim online or mail the Claim Form to: Vonage MDL Settlement Administrator, P.O. Box 6809, Portland, OR 97228-6809. All requests for benefits must be made by submitting your Claim by July 11, 2011 (sixty (60) days after the Final Approval Hearing). You may submit your Claim online or via US mail. If you plan to mail the Claim Form, it must be postmarked by that date. Any Claim Form submitted online or postmarked after this date will be deemed late and will result in your Claim being denied. You can obtain a copy of the Claim Form here. Certain requests for relief may require that additional documentation be provided with the Claim Form.

Reimbursements will be mailed to eligible Class Members who submit a valid Claim Form on time, after the Court grants final approval of the Settlement and after any appeals are resolved. If Judge Wolfson approves the Settlement after a hearing on May 12, 2011, changed from May 10, 2011 (see the section “The Court’s Final Approval Hearing” below), there may be appeals.It is always uncertain whether these appeals can be resolved, and resolving them can take time. Also, reimbursements will be sent only when the reimbursement amounts are final under the terms of the Settlement Agreement. Please be patient.

The proposed Settlement is intended to settle all claims against Vonage that Class Members have asserted, or any claims against Vonage that Class Members could have asserted in the Class Action with respect to the promotional full month of free service, the money back guarantee, disconnection, termination or cancellation fees and monthly service fees charged after cancellation for accounts opened on or before January 3, 2011.

If the proposed settlement becomes final, Class Members will be releasing Vonage and all related people and entities from all of the claims described and identified in Sections VI of the Settlement Agreement. This means that you will no longer be able to sue Vonage for any of the claims described in the Settlement Agreement.

If the proposed Settlement is not finally approved by the Court or does not become final for some other reason, the lawsuit will continue and you will not have released any claim or party.

The release is explained in more detail in the Settlement Agreement, or by contacting the Claims Administrator at 1(877) 810-7292.

No. If you exclude yourself, you may not apply for any benefits under the proposed Settlement and you cannot object to the proposed Settlement. If you ask to be excluded, however, you may sue or be part of a different lawsuit against the Defendants in the future. You will not be bound by anything that happens in this lawsuit.

Unless you exclude yourself, you give up the right to sue Vonage for all of the claims resolved by the proposed Settlement. You must exclude yourself from this Class to start your own lawsuit or continue a different lawsuit related to the claims against Vonage in this lawsuit. Your ability to sue Vonage on your own and the time for doing so may be limited by state or federal law.

To exclude yourself from the proposed Settlement, you must send a letter or other written document stating that you want to be excluded from the Class. Be sure to include:

1. The name of the lawsuit, In re Vonage Marketing and Sales Practice Litigation, MDL No. 1862, Civil Action No. 3:07-cv-03906 (U.S. District Court for the District of New Jersey);
2. Your full name, address, telephone number, and signature; and
3. State that you want to exclude yourself from the Class.

Send copies of any request for exclusion to Vonage MDL Settlement Administrator, P.O. Box 6809, Portland, OR 97228-6809, postmarked no later than April 19, 2011.

If you disagree with any terms of the proposed Settlement, you may express your views to the Court through a written response to the proposed Settlement. The Court will consider your views. You must object to the proposed Settlement in writing. In your written objection, be sure to include the following information:

1. State each specific reason in support of your objection and any legal support for each objection;
2. Your full name, address, telephone number, e-mail address and signature;
3. The name of the lawsuit, In re Vonage Marketing and Sales Practice Litigation, MDL No. 1862, Civil Action No. 3:07-cv-03906 (U.S. District Court for the District of New Jersey); and
4. Identify which of the benefit(s) you would be eligible for as set forth in the claim form.

Send copies of any objection to the Court, Class Counsel and Vonage’s Counsel at the mailing addresses listed below, by April 29, 2011.

Any objections received after this deadline will be deemed late. If you fail to send your written objection on time, you waive any objection you may have.

Objecting is simply telling the Court that you do not like something about the proposed Settlement. You can object only if you stay in the Class. Excluding yourself is telling the Court that you do not want to be part of the Class. If you exclude yourself, you cannot object to the proposed Settlement because the case no longer affects you, and you will not be eligible to apply for any benefits under the proposed Settlement.

Yes. The Court appointed Jonathan Shub, Esq., Seeger Weiss LLP of Philadelphia, Pennsylvania and Andrew N. Friedman, Esq., Cohen Milstein Sellers & Toll PLLC of Washington, D.C. as Class Counsel. You will not be charged for these lawyers.

At the Final Approval Hearing, Class Counsel will request that the Court award Class Counsel: (1) attorneys’ fees not to exceed 33⅓ % of the $4.75 million cash fund established by Vonage; (2) reimbursement of their expenses; (3) interest on such fees and expenses as earned by the fund; and (4) incentive awards not to exceed $1,000 for each Named Plaintiff. The fee requested by Class Counsel would compensate them for their efforts in achieving the proposed Settlement for the benefit of the Class and their risk in undertaking this lawsuit.

You do not need to hire your own lawyer. If you want your own lawyer to speak for you or appear in Court, you must file a Notice of Appearance with the Court (see Section 23, below). If you want to be represented by your own lawyer in this case, you may hire one at your own expense.

No. The Settlement is administered by a Settlement Administrator approved by the Court. You will submit your claim, if eligible, to the Settlement Administrator using the contact information contained in this notice. The Settlement Administrator is compensated directly out of the fund. You are not responsible for payment to the Settlement Administrator.

The Court will hold the Final Approval Hearing in Courtroom 5E, at the United States District Court for the District of New Jersey, 402 East State Street, Room 5050, Trenton, New Jersey on May 12, 2011 at 10:00 a.m. (previously scheduled for May 10, 2011).

It is not necessary for Class Members to appear at the Final Approval Hearing. Class Counsel will represent all Class Members at the Final Approval Hearing except for those who object to the Settlement and choose to enter an appearance through counsel of their choice at their own expense.

The Final Approval Hearing may be moved to a different date without additional notice, so it is recommended that you periodically check this website for any updated information.

Attendance is not required. Class Counsel is prepared to answer the Court’s questions on your behalf. If you or your attorney still want to attend the Final Approval Hearing, you are welcome to do so at your expense. However, attendance is not necessary or required, even if you submitted an objection. As long as the objection is properly submitted and postmarked before the deadline, the Court will consider it.

To speak at the Final Approval Hearing, you must send a letter or other written document identifying it as your “Notice of Appearance” in In re Vonage Marketing and Sales Practice Litigation, MDL No. 1862, Civil Action No. 3:07-cv-03906 (U.S. District Court for the District of New Jersey). Be sure to include your name, address, telephone number, and your signature. You also must include information about what you intend to say at the hearing. If you intend to have counsel appear and represent you at the hearing, please so indicate and provide the full name and contact information for that counsel. Also, please list anyone you or your counsel will call to testify in support of your objection at the hearing. Please send copies of your “Notice of Appearance” to the Court, Class Counsel, and Vonage’s Counsel at the addresses provided above in Section 15. The Notice of Appearance must be postmarked no later than March 1, 2011. The Court will decide if you will be allowed to speak at the Final Approval Hearing.

This letter or other written documents must be sent to counsel at the addresses provided in Section 15 and postmarked no later than March 1, 2011, and sent to the Court at the address provided in Section 15 no later than March 14, 2011.

You have the right to do nothing. If you do nothing, you will not get any of the benefits under this proposed Settlement because the benefits must be requested by making a claim as described above. In addition, unless you exclude yourself, you will not be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit, including any other class action lawsuit, against Defendants about the legal issues in this case.

More details about the proposed Settlement are available in the Settlement Agreement, or by contacting the Settlement Administrator at questions@settlementvonage.com or 1(877) 810-7292.

More details about the lawsuit are available in the Consolidated Class Action Complaint filed by Class Counsel, or by contacting the Settlement Administrator.

Furthermore, as the Settlement is being administered by the Settlement Administrator, all inquiries regarding the Consumer Class Action, the Settlement, a Class Member’s eligibility, or the claims process or its status will be referred to the Settlement Administrator.

Vonage will reimburse Class Members for valid claims under the terms and conditions of the Settlement Agreement. Full details on the distributions of the settlement fund are set forth in the Settlement Agreement available here.

The Settlement provides four different categories of relief. Each class member who filed a valid and timely claim will be reimbursed for each benefit category claimed for each unique phone number:

Category 1: If you signed up for, but did not receive, a full month of free service under a Vonage free month promotional plan, you will receive $10.

Category 2: If you cancelled service between 31 and 40 days of sign-up but did not receive a full refund of monies paid to Vonage under a 30-day money back guarantee plan (or cancelled service between 61 and 70 days and did not receive a full refund of monies paid to Vonage under a 60-day money back guarantee plan), then you will receive a refund of $25 for the monthly service fee and $80 for equipment charges that you may have paid.

Category 3: If you paid, but were not refunded or credited, a termination, cancellation or disconnection fee after cancelling Vonage service, then you will receive a refund of $40.

Category 4: If you paid, but were not refunded or credited, a monthly service fee for additional months of service that you did not use after you requested service cancellation, you will receive a refund of $50.

Class members may be entitled to receive benefits from more than one Category, although no Class Member can receive benefits under both Category 1 and Category 2.

If you wish to contest your award amount you must:

1. Not cash or deposit your check
2. Write to the Settlement Administrator within twenty days of the check issue date at Vonage MDL Settlement Administrator, P.O. Box 6809, Portland, OR 97228-6809 describing the reasons you believe that this amount is not correct.
3. Provide any and all documentation that will support the different award amount.

Checks were mailed on December 7th, 2011. Please allow at least 5 to 7 mailing days for delivery. If you still feel you should have received a check, but you haven’t, you may contact the Settlement Administrator at: Vonage MDL Settlement Administrator, P.O. Box 6809, Portland, OR 97228-6809. Or you may e-mail your inquiry to: questions@settlementvonage.com.

You may update your mailing address by writing to: Vonage MDL Settlement Administrator, P.O. Box 6809, Portland, OR 97228-6809. Or you may e-mail your change to: questions@settlementvonage.com. If your check is returned as undeliverable, or was not forwarded and cashed by the end of its stale date, we will remail to the new address at that time.