An investigation for investors in Zagg Inc (NASDAQ:ZAGG) shares over possible breaches of fiduciary duty by certain officers and directors was announced and NASDAQ:ZAGG stockholders should contact the Shareholders Foundation at email@example.com
San Diego, CA -- (SBWIRE) -- 11/27/2012 -- An investigation on behalf of current long-term stockholders in shares of Zagg Inc (NASDAQ:ZAGG) was announced concerning whether certain directors and officers of Zagg Inc breached their fiduciary duties in connection with certain statements regarding the Company's business, operational and compliance policies.
Investors who are current long term stockholders in shares of Zagg Inc (NASDAQ:ZAGG) shares, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm for current long term investors in Zagg Inc (NASDAQ:ZAGG) stocks follows a lawsuit filed earlier by shareholders against Zagg Inc (NASDAQ:ZAGG) over alleged seucrities laws violations.
The investigation on behalf of current long term investors in Zagg Inc (NASDAQ:ZAGG) stocks concerns whether certain Zagg officers and directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court, District of Utah the plaintiff alleges that Zagg Inc 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) fell from as high as $13.03 in April 2012 to as low as $6.54 on Nov. 19, 2012.
On Nove,ber 26, 2012, NASDAQ:ZAGG shares closed at $7.22 per share.
Those who are current long term stockholders in shares of Zagg Inc (NASDAQ:ZAGG) shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego