Norvergence Judgment Eliminates $47 Million In Consumer Debt Owed for Worthless Telecom Services

Company Promised Savings to Small Businesses and Non-Profits Through Convergence of Voice, Internet, and Cellular Phone Services

The Federal District Court in Newark, New Jersey, today entered a final default judgment against NorVergence, Inc., that will immediately result in the cancellation of 1,600 contracts with the company valued at more than $47 million. The judgment is the result of a November 2004 Federal Trade Commission complaint charging NorVergence with defrauding consumers through misleading claims that it would provide them with dramatic savings on their monthly telephone, cellular, and Internet bills.

The court found that consumers signed a set of applications and agreements with a total price equal to the promised monthly payments over five years. Most of the total payments were allocated to rental agreements for a “Matrix” or “Matrix Soho” device that supposedly would provide the promised costs savings. In reality, the Matrix was just a standard integrated access device (IAD), commonly used to connect telephone equipment to a long-distance provider's lines. The Matrix Soho was essentially a firewall. READ MORE HERE