Vonage has been ordered to pay $120 million to end a patent lawsuit won by Verizon after a US appeals court refused to reconsider the case.

Vonage had asked the Court of Appeals for the Federal Circuit to review the ruling, or have the full 12-judge court reconsider the decision.

The decision in question was the previous March ruling that found Vonage guilty of violating two Verizon patents. Verizon was awarded a 5.5% royalty on future income. from Vonage, as well as damages.

"We were not surprised, but disappointed that the court denied our request for a rehearing of the case", a Vonage spokesman told Bloomberg in an e-mailed statement. "We are pleased to continue putting litigation behind us."

This decision does not bode well for the troubled telecommunications company, which saw its stock drop even further, with some analysts speaking of the possibility of bankruptcy.