Just a matter of weeks after settling its patent dispute with Sprint Nextel (S), Internet phone provider Vonage Holdings reported Friday that it's being sued by AT&T for patent infringement. Vonage is in talks with AT&T to settle the matter, but told the Associated Press that it can't guarantee the case won't go to trial. Of course, VG is no stranger to the courtroom back in March, VG was found guilty of violating patents held by Verizon (VZ).
On a technical basis, VG continues to skate lower under pressure from its 10-week and 20-week moving averages, as it has done since the emergence of those trendlines back in late 2006. The shares have been stuck below the 3 level since mid-July.
Meanwhile, short sellers continue to bet that the beleaguered stock can slump even further. Short interest on VG swelled by more than 8% during the most recent reporting period, and it would now take nearly 13 trading days (at VG's average daily volume) for all the existing shorted shares to be repurchased.