NASHVILLE, Tenn. -- Tennessee is one of 32 states receiving a settlement from Vonage, an Internet-based telephone service provider. The state will receive $45,000 plus restitution, Circuit Judge Hamilton Garden approved.

Video: Tenn. Reaches $45,000 Settlement With Vonage

As part of the agreement, the service provider has to make marketing practice changes, more easily allow customers' cancellations and refund eligible customers.

According to a press release Monday from the attorney general, Vonage consumers had difficulty canceling their phone service. The release said that the company had given incentives to workers for keeping hold of customers calling customer service to cancel.

The company sent its official statement to Channel 4:

“Vonage is pleased to have reached a settlement with various state attorneys general of their investigation into certain of the company’s business practices. Vonage fully cooperated in the investigation and, as part of the settlement, has agreed to maintain or implement enhancements to its business practices that will improve customer experience and satisfaction, many of which the company implemented prior to completion of the settlement.

"Under the settlement, Vonage also will pay $3 million to the states participating in the settlement to cover legal and investigative fees incurred. The company also agreed to provide refunds to customers under certain circumstances. The charges related to the payment to the states and the refunds were previously reflected in the Company's financial results. No finding of any violation or wrongdoing was made by the states in connection with the investigation or settlement.”

Vonage customers who have had problems with the company can file a complaint with the Tennessee Division of Consumer Affairs at 1-800-342-8385 or 615-741-4737 or online at www.state.tn.us/consumer.

For more information about the lawsuit, go to the Tennessee Attorney General's Web site .

Reporter Sara Dorsey is working on this story and will have a full report on Channel 4 News at 6:30.