FREQUENTLY ASKED QUESTIONS

PLEASE DO NOT CONTACT VONAGE ABOUT THIS SETTLEMENT. ANY AND ALL CALLERS WILL BE REFERRED TO THIS WEBSITE.

PLEASE DO NOT TELEPHONE THE COURT OR THE OFFICE OF THE CLERK FOR INFORMATION REGARDING THIS SETTLEMENT OR THE CLAIM PROCESS.

1. What is the Lawsuit about?
2. Why is this a class action?
3. Why is there a Settlement?
4. Can I file my own lawsuit or demand?
5. How do I know if I am covered by the Settlement?
6. What does the Settlement provide?
7. How much could my Settlement Payment be?
8. How can I get a Settlement Payment?
9. When would I get my Settlement Payment?
10. Do I have a lawyer in this case?
11. How will the lawyers be paid?
12. What are my current options?
13. How do I get out of the Settlement?
14. If I exclude myself, can I get money from the Settlement?
15. If I don’t exclude myself, may I sue for the same thing later?
16. How do I object to the Settlement?
17. What is the difference between objecting and excluding?
18. What if I do nothing?
19. Are there tax consequences for me if I participate in this Lawsuit?
20. The person to whom the Notice was sent is deceased. What should I do?
21. The Settlement Class Member listed is incapable of acting on his/her own behalf. I have Power of Attorney. What should I do?
22. What if the Settlement is does not receive final approval by the Court?
23. Do I need to attend the Court Hearing?
24. How can I get more information?

1. What is the lawsuit about?

   In May, 2006, two individual plaintiffs brought suit against Vonage, seeking to represent a class, and alleging that Vonage made false and misleading statements and concealed material information in the marketing, advertising, and sale of Vonage Fax Service by purportedly failing to inform consumers that the protocol used for the Vonage Fax Service was unreliable and unsuitable for facsimile communications.

   Vonage has and continues to vigorously deny these allegations and the other claims in the lawsuit, and believes them to be without merit. Vonage has asserted numerous defenses to the claims and believes that it has complied fully with all laws, disclosed all material facts, and remedied any problems that customers experienced with Vonage Fax Service. Vonage has continued to improve its Vonage Fax Service in numerous ways. Vonage denies any liability in this Action and believes that if this case were litigated and had not settled, Vonage would prevail on the merits of the claims with no finding of liability.

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2. Why is this a class action?

   In a class action, one or more people called Class Representatives sue on behalf of people who they believe have similar claims. All these people are a Class or Class Members. If the Court certifies a class, one court resolves the lawsuit for all Class Members, except for those who choose to exclude themselves from the Class.

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3. Why is there a Settlement?

   During the course of the Action, the Class Representatives and Vonage held settlement discussions. These discussions were conducted at arms-length and without collusion. As a result of intense bargaining by able counsel on both sides, the Settling Parties were able to agree to the current Settlement Agreement, which has been preliminarily approved by the Court. The Settlement resolves all claims between the Class Members and the Released Vonage Parties.

   Relative to the risks and costs of continuing the litigation, Class Counsel believe this Settlement provides a favorable recovery which is in the best interests of all Class Members. There are significant risks for class members if Plaintiffs continue to litigate against Vonage and proceeding to trial; the Settlement eliminates these risks. In addition, settling the case now has the further advantage of avoiding the very substantial additional costs and delay that further litigation would involve. Given the costs involved in further litigation and the time-value of money, even if a litigation class was certified and a favorable judgment was obtained at trial, that judgment could well produce less net recovery to Class Members than the present Settlement.

   Vonage has agreed to this Settlement to avoid the burdens, costs and uncertainties inherent in any litigation, and because Vonage desires to resolve litigation with its valued customers.

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4. Can I file my own lawsuit or demand?

   No, you cannot file your own lawsuit unless you follow the procedures to submit a timely Request for Exclusion from the Settlement Class (this is called “opting out.”) If you submit a Request for Exclusion, you cannot submit a Claim Form and cannot participate in the Settlement. If you do not timely submit a Request for Exclusion, you cannot file your own lawsuit or demand, irrespective of whether or not you submit a Claim Form and whether or not you are entitled to any relief in the Settlement.

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5. How do I know if I am covered by the Settlement?

   This Class consists of all persons in the United States who purchased Vonage Fax Service with an independent/dedicated fax line, as part of either a Vonage Residential Plan and who paid a minimum of $9.99 to Vonage for service, or a Vonage Small Business Plan on which he or she made payment, to and through the date of the Settlement Agreement, August 20, 2008.

   In Order to be eligible to receive money in this Settlement, you must submit an electronic Claim Form through this website, and must meet all of the criteria for relief. The Claim Form requires, among other things, that you provide certain information about yourself and that you make certain averments and representations regarding your Vonage Fax Service, your internet service and internet access device(s), and your use of Vonage Fax Service. For example:
   

   • You must provide certain personal information so that your identity can be verified.
   • You must state, under penalty of perjury, that on three or more different occasions during the relevant period you experienced problems with sending or receiving a fax through Vonage Fax Service.
   • You must confirm that at the time these problems were experienced, all of the following statements were true:
     (1) You had broadband, high-speed Internet access through a cable or DSL modem that provided continuous connection to the Internet;
     (2) Your Internet service was working;
     (3) The fax you were attempting to send or receive was less than 100 pages in length;
     (4) You confirmed that the number dialed was correct, and that the fax machines on both sides were turned on, working, and loaded with paper; and
     (5) You called Vonage customer service to explain and troubleshoot the problem yet remained unable to successfully fax.

   The only way to participate in this Settlement is to submit an electronic copy of the Claim Form through this website.

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6. What does the Settlement provide?

   The full terms of the Settlement, as preliminarily approved by the Court, can be found by clicking here.

   To summarize, under the Settlement, Vonage has agreed as follows:
   

   • Vonage shall make available a Settlement Fund, up to, and capped at, $1,750,000.00. The amount that each participating Class Member receives will depend upon the number of valid claims. Each Class Member who submits a valid Claim Form could receive an amount up to, but not more than, $19.98 per fax line that was in operation for two months or longer. Only one Claim Form will be accepted for each Vonage fax line. The Claim Form must be submitted by the owner of the fax line, whose name is on the account.
   • Any amounts in the Settlement Fund not claimed by Class Members who submit valid Claim Forms shall revert back to Vonage, EXCEPT THAT Vonage guarantees that the Settlement Fund will be funded at a minimum of $1,000,000.00, irrespective of the number of valid Claim Forms submitted.
   • Any portion of the $1,000,000.00 guaranteed amount that is not distributed to Class Members who submit a valid Claim Form (if any such monies exist) shall be deemed a Cy Pres fund, the proceeds of which shall be distributed to Legal Services of New Jersey, an independent, non-profit organization which strives to ensure equal access to justice under law by providing free legal assistance to low-income people in civil matters.
   • If the number of valid Claim Forms received is sufficiently high such that payment of two months’ fax service to each Class Member would exceed the maximum, capped amount of the Settlement Fund (i.e., $1,750,000.00), then amounts paid to Class Members who qualify for any amount of Settlement relief shall be reduced on a pro rata basis.

   In exchange for these benefits, the Settlement provides Vonage with a release of liability from all Class Members.

   There are numerous additional provisions and terms contained in the Settlement that are not summarized here. To view the full terms of the Settlement, as preliminarily approved by the Court, please click here.

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7. How much could my Settlement Payment be?

   Each Class Member who submits a valid Claim Form and who meets all criteria of this Settlement will be eligible to receive a payment from the Settlement Fund. The maximum amount that any Class Member can receive will be $19.98 per fax line in operation for two months or longer. If every single Class Member were to submit a valid and timely Claim Form in this Settlement and meet all criteria for relief (which is, in the opinion of Class Counsel, highly unlikely), your Settlement payment per claim would be no more than $4.17. Only one Claim Form will be accepted for each Vonage fax line. Class Members who owned more than one fax line can submit more than one Claim Form. Class Members who do not timely submit a Claim Form, and Class Members who submit a Claim Form that does not meet all of the criteria for Settlement relief, will not receive any money in this Settlement.

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8. How can I get a Settlement Payment?

   In order to potentially be eligible for monetary relief in the Settlement, a Class Member must submit a Claim Form electronically through this website, no later than March 2, 2009, or within 45 days of the date on which your Notice of the Settlement was first sent to you by either by email of by regular mail. A separate form must be submitted for each fax line on which you are making a Claim. Only one Claim will be accepted per Vonage independent fax line. Please be advised that submission of a Claim Form does not guarantee that you will receive any payment. To be eligible for payment, your Claim Form must meet all Settlement criteria, must be submitted timely, must be submitted by the owner of the fax line whose name is on the account, and must include all of the required averrals. Individuals who submit a Request for Exclusion from the Class will not be entitled to any payment, unless the Request for Exclusion is withdrawn in the manner detailed in the Class Notice and the Order of the Court.

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9. When would I get my Settlement Payment?

   Eligible Class Members will not receive a payment until after the Court finally approves the Settlement, and all appeals (if any are filed) are resolved. As of December 2, 2008, the Court preliminarily approved the Settlement, but the process awaits final approval. If the Court refuses to finally approve the Settlement, there will be no payments. The Court will hold a hearing at 11:00 a.m. on March 26, 2009, to decide whether to approve the Settlement. If the Court approves the Settlement, there may be appeals that could delay your payment, perhaps for more than a year. Please be patient.

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10. Do I have a lawyer in this case?

    “Class Counsel” refers to the law firm representing members of the Class. The Lead Class Counsel is Jean-Marc Zimmerman, of the law firm of Zimmerman Levi & Korsinsky LLP, 226 St. Paul Street, Westfield, NJ 07090. You will not be personally charged by this lawyer for work on the case. If you want to be represented by your own lawyer, you may hire one at your own expense.

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11. How will Class Counsel be paid?

    Class Counsel has not been paid for its work and has advanced the costs of prosecuting this lawsuit which was filed on May 22, 2006. Class Counsel will apply to the Court for an award of attorneys’ fees and expenses that shall not exceed 25% of the payout to Class Members in this Settlement, inclusive of the $1,000,000 guaranteed amount. Vonage shall not pay more than such amount for any such award of attorneys’ fees and expenses. The award of fees will not reduce the value of the Settlement benefits to the Class. The Court will determine what amount of attorneys’ fees and expenses are appropriate.

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12. What are my current options?
    • You may submit a Claim Form. This is the only way to be eligible for a payment from the Settlement Fund, as described above. Only one Claim Form will be accepted for each Vonage fax line. Claim Forms must be submitted electronically through this website. You will remain in the Class and give up your right to sue Vonage separately about the claims made in this lawsuit.
    • You may exclude yourself/Opt Out. You will get no payment from the Settlement Fund in this case. This is the only option that would let you be part of any other lawsuit against Vonage about the legal claims in this case. Requests for Exclusion must be postmarked by March 2, 2009. You should request Exclusion only if you want to pursue a claim against Vonage regarding its Fax Service, but do not want to receive the relief through this Settlement.
    • You may remain a member of the Class and object to the Settlement by writing to the Court about what you don’t like about the Settlement. The deadline for objecting is March 2, 2009.
    • You may do nothing. If you do not have a claim against Vonage, or you do not meet the Settlement criteria, you should do nothing. You will get no payment and you will give up your right to make a claim against Vonage about the claims made in this lawsuit.

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13. How do I get out of the Settlement?

    If you want to opt out, you must prepare a Request for Exclusion in writing that must contain the following:
    

    • Your name, address and telephone number, and your email address at the date your Vonage account was activated;
    • Date of purchase of Vonage Fax Service;
    • A clear statement that you want to opt-out of the Settlement, and receive none of the benefits of the Settlement; and
    • Your signature.

    Mail your Opt-Out Notice by First-Class Mail, postmarked by the latter of (a) March 2, 2009, or (b) forty-five days from the date on which you first received the Notice, to Vonage’s Counsel:

    Sonnenschein Nath & Rosenthal LLP
    Attn: Sandra D. Hauser
    1221 Avenue of the Americas
    New York, NY 10020

    If you submit a Request for Exclusion and then change your mind, you can revoke the Request for Exclusion by sending a statement in writing, with all the same information, to the address above, stating that you want to revoke your Request. Your revocation will be good if it is postmarked no later than March 2, 2009.

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14. If I exclude myself, can I get money from the Settlement?

    No. As explained above in greater detail, if you choose to exclude yourself from the Settlement, you will get nothing. Do not send in a Claim Form.

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15. If I don’t exclude myself, may I sue for the same thing later?

    No. As explained above in greater detail, unless you exclude yourself from the Settlement, you give up the right to sue Vonage for the claims that this Settlement resolves.

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16. How do I object to the Settlement?

    If you want to object to the Settlement, you must prepare a written objection. The objection must contain:
    

    • Your name, address and telephone number, and your email address at the date your Vonage account was activated;
    • Date of purchase of Vonage Fax Service;
    • A statement of your objection to the Settlement and the grounds for any such objection;
    • A statement that you have not opted-out of the Settlement; and
    • Your signature.

    Mail your originally signed objection by First-Class Mail, postmarked by March 2, 2009, to Class Counsel:

    Jean-Marc Zimmerman
    Zimmerman Levi & Korsinsky LLP
    226 St. Paul Street
    Westfield, NJ 07090

    and serve a copy by First-Class Mail, postmarked by March 2, 2009, on Vonage’s Counsel:

    Sonnenschein Nath & Rosenthal LLP
    Attn: Sandra Hauser
    1221 Avenue of the Americas
    New York, NY 10020

    DO NOT CONTACT OR TELEPHONE VONAGE OR THE COURT IN ATTEMPT TO OBJECT.

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17. What is the difference between objecting and excluding?

    Objecting is simply telling the Court that you do not like something about the 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 and you want to pursue a claim independently. If you properly and timely exclude yourself, you cannot object because the case will no longer affect you.

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18. What if I do nothing?

    You are not required to do anything about this Notice. If you did not use Vonage Fax Service, or if you do not have a claim or did not experience problems, you should do nothing.

    However, if you are a Class Member, and you do not submit a Claim Form, you will not be able to receive a payment. Also, unless you exclude yourself, you will be bound by the terms of the proposed Settlement described in the Notice, upon approval of the Settlement by the Court, and you will not be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against Vonage about the legal issues in this case.

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19. Are there tax consequences for me if I participate in this Lawsuit?

    You must consult your own tax advisor regarding any tax consequences of the Settlement, including any Settlement Payments or benefits provided under the Settlement, and any tax reporting obligations you may have with respect thereto. The parties make no representations, and assume no responsibility, with respect to any tax consequences that may occur.

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20. The person to whom the Notice was sent is deceased. What should I do?

    You may submit a claim on behalf of the estate. To do so, you must contact Class Counsel before March 2, 2009:

    Jean-Marc Zimmerman
    Zimmerman Levi & Korsinsky LLP
    226 St. Paul Street
    Westfield, NJ 07090

    You still must submit a Claim Form, and must enclose with your Claim Form a copy of the death certificate and any other documents you may have, such as a document appointing you Personal Representative, or an Affidavit of Heirship. To submit such a claim, you must be able to make all averalls in the Claim Form under penalty of perjury.

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21. The Settlement Class Member listed is incapable of acting on his/her own behalf. I have Power of Attorney. What should I do?

    You may submit a claim on behalf of the Settlement Class Member. To do so, you must contact Class Counsel before March 2, 2009:

    Jean-Marc Zimmerman
    Zimmerman Levi & Korsinsky LLP
    226 St. Paul Street
    Westfield, NJ 07090

    You still must submit a Claim Form, and must enclose with your Claim Form a copy of your Power of Attorney. To submit such a claim, you must be able to make all averalls in the Claim Form under penalty of perjury.

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22. What if the Settlement does not receive final approval by the Court?

    If the Settlement is not finally approved, both Vonage and Class Counsel have the right to terminate their agreement and return to litigation.

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23. Do I need to attend the Court Hearing?

    No. You do not need to attend the hearing to get any relief from the Settlement. If you want to attend, please follow the instructions contained in the Class Notice here.

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24. How can I get more information?

    This FAQ contains only a summary of the proposed Settlement. For the precise terms and conditions of the Settlement, you should consult the detailed Settlement Agreement, by clicking here. It is also on file with the Clerk of the Court. The pleadings and other records in this litigation, including that stipulation, may be examined at any time during regular business hours at Office of the Clerk of the Court, Martin Luther King Jr. Federal Courthouse, 50 Walnut Street, Newark, New Jersey 07101, or by following the links on this website by clicking here.

    PLEASE DO NOT CONTACT VONAGE ABOUT THIS SETTLEMENT. ANY AND ALL CALLERS WILL BE REFERRED TO THIS WEBSITE.

    PLEASE DO NOT TELEPHONE THE COURT OR THE OFFICE OF THE CLERK FOR INFORMATION REGARDING THIS SETTLEMENT OR THE CLAIM PROCESS.

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