San Diego, CA -- (SBWIRE) -- 09/10/2012 -- An investor in shares of Zagg Inc (NASDAQ:ZAGG) filed a lawsuit in the U.S. District Court, District of Utah, over alleged securities laws violations by Zagg Inc in connection with certain statements.
Investors who purchased shares of Zagg Inc (NASDAQ:ZAGG) between February 28, 2012 and August 17, 2012, have certain options and there are short and strict deadlines running. Deadline: November 5, 2012, NASDAQ:ZAGG investors should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired Zagg Inc (NASDAQ:ZAGG) securities between February 28, 2012 and August 17, 2012, Zagg Inc and certain of its officers violated the Securities Exchange Act by issuing between February 28, 2012 and August 17, 2012 allegedly false and misleading statements regarding the Company's business, operational and compliance policies
Specifically the plaintiff claims that unbeknownst to NASDAQ:ZAGG shareholders, a "margin call situation" involving former CEO Robert G. Pedersen began in December 2011, whereby Robert G. Pedersen borrowed substantial amounts using his Zagg shares as collateral. The plaintiff says that although Robert G Pedersen ultimately resigned in August 2012 as the Company's CEO investors were not informed that he had pledged Zagg stock until after his resignation over eight months later.
On December 21, 2011, Pedersen sold nearly $2.6 million worth of Zagg stock.
The plaintiff says that at the time, shareholders were only informed that Robert Pedersen sold the stock to "meet an immediate financial obligation.", but in truth, the December 21, 2011 stock sale was made to meet a margin call. Moreover, so the plaintiff further undisclosed to investors, Pedersen had more than a million additional shares posted as collateral, which were subject to margin calls.
Then on August 17, 2012, Zagg Inc that its board of directors accepted that Pedersen had "stepped down as CEO and Chairman" effective immediately.
The plaintiff says that it was later disclosed that Pedersen had resigned after selling over 500,000 shares of Zagg common stock on August 14, 2012, at prices ranging between $8.10 and $8.43, to meet margin calls.
The plaintiff says that in a conference call held on August 28, 2012, Zagg Inc disclosed that Pedersen had sold an additional 1.2 million shares of Zagg stock to meet margin requirements.
Shares of Zagg Inc (NASDAQ:ZAGG) rose from $6.70 per share in late December 2011 to slightly over $13 per share in April 2012. However, NASDAQ:ZAGG shares fell from over $10 in early August 2012 to as low as $7.00 per share on August 24, 2012.
On September 7, 2012, NASDAQ:ZAGG shares closed at $8.39 per share.
Those who purchased shares of Zagg Inc (NASDAQ:ZAGG) between February 28, 2012 and August 17, 2012, have certain options and there are short and strict deadlines running. Deadline: November 5, 2012, NASDAQ:ZAGG investors should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego