Article: Vonage Settles Patent Suit With Sprint Nextel

Vonage Holdings, the Internet phone-service provider, is had its biggest single-day advance since going public last year after it settled one of two patent suits that threatened its survival.

Vonage's shares more than doubled after Sprint Nextel of Reston agreed to license more than 100 Internet telephone patents to Vonage, which is to pay $80 million to end the case and use the technology.

The settlement removes one hurdle for Vonage, allowing it to connect Internet calls to standard phone lines. Vonage, of Holmdel, N.J., still faces a cash shortfall that may leave the money-losing company struggling to cover its expenses next year, Stanford Group analyst Clay Moran said.

"It's good in that ...

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