Shares of Vonage Holdings proceeded at a clip today, rallying more than 74% from its close on Friday.
The boom can be attributed to the company's agreement to pay $80 million to Sprint Nextel to end a patent dispute, covering fees for past use of Sprint's patented technology, future licensing, and prepayment. The legal battle for Vonage is only halfway over, though, as the company is appealing the federal court ruling ordering VG to pay $66 million and a 5.5% royalty fee to Verizon for illegally using VZ patents.
Since going public at $17 a share in May 2006, the New Jersey-based company's stock has plummeted, steadily hitting lower highs and lows. VG recently marked an all-time low of 89 cents per share on September 28.
Though shares perked up quite a bit today, the stock is currently breaking even with its 10-day moving average, still 0.5 points below its 20-day moving average. As of 12:30 p.m., VG shares are trading at an even $2, up 85 cents.