Citigroup Global Markets, UBS and Deutsche Bank Vonage IPO Restitution
Restitution Information for Investors
This case is closed. You may review eligibility and related claims information for reference only.
This page provides information about restitution for certain customers of Citigroup Global Markets, UBS Securities and Deutsche Bank Securities who purchased shares of the Vonage, LLC initial public offering (IPO) in May 2006 through a direct share program.
In September 2009, FINRA fined the three firms in connection with their failure to adequately supervise communications with their customers who invested in the Vonage IPO. Each of the firms was a lead underwriter for the Vonage IPO, which included a directed share program under which the firms sold approximately 4.2 million shares to Vonage customers through accounts the customers had opened at the firms.
FINRA found that each of the firms failed to establish adequate systems and procedures to supervise the outsourcing of communications with customers about the sale of securities in the Vonage IPO. FINRA also ordered that the firms make restitution payments to compensate certain customers for the difference between the $17 per share IPO price they paid and the lower price of Vonage stock at the time they learned that they had been allocated shares. Pursuant to the terms of the settlement, the firms will notify eligible customers.
Customers eligible for restitution: There is nothing you need to do at this time. You will be contacted by your securities firm if you are potentially eligible to receive a payment.
For more information about the FINRA enforcement action, see FINRA’s News Release: FINRA Fines Citigroup Global Markets, UBS and Deutsche Bank $425,000, Orders Customer Restitution for Supervisory Failures in Vonage IPO.