NEW YORK - Vonage Holdings Corp., the beleaguered provider of Internet-based phone service, said yesterday it has settled a patent lawsuit brought by Verizon Communications Inc. for a maximum of $120 million.
The lawsuit, along with two filed by other phone companies, had cast a heavy shadow over Vonage's future. The company's service enables subscribers to connect phones to broadband connections for about $25 a month.
After setbacks in the litigation with Verizon, which began in June 2006, Vonage put $88 million in escrow. The settlement caps any payouts Vonage will make on top of that amount at $32 million.