Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the District of Utah on behalf of all persons or entities that purchased the securities of ZAGG Incorporated (“Zagg” or the “Company”) (NASDAQ GS: ZAGG) between February 28, 2012 and August 17, 2012, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers and directors (the “Complaint”).
If you purchased shares of Zagg during the Class Period and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 825 East Gate Boulevard, Suite 300, Garden City, NY at (888) 969-4242, by e-mail to email@example.com, or at: http://www.rigrodskylong.com/investigations/zagg-incorporated-zagg.
Zagg, a Nevada corporation headquartered in Salt Lake City, Utah, designs, manufactures and distributes protective coverings, audio accessories and power solutions for consumer electronic and hand-held devices. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s business operations, financial condition and prospects. Specifically, the Complaint alleges (1) that Defendant Robert G. Pedersen (“Pedersen”) had placed more than 50% of his Zagg ownership as collateral on margin, jeopardizing his future with the Company; (2) that as a result of Pedersen’s reckless actions, the Company began a secret succession plan to replace him with Defendant Randall Hales (“Hales”) as Chief Executive Officer (“CEO”); and (3) that as a result of the above, the Company’s financial statements were materially false and misleading at all relevant times. As a result of defendants’ false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.
According to the Complaint, unbeknownst to the Company’s shareholders, a “margin call situation” involving Pedersen began in December 2011, whereby Pedersen borrowed substantial amounts of monies, putting up his Zagg shares as collateral. Although Defendant Pedersen ultimately resigned his post as the Company’s CEO due to the “margin call situation,” investors were not informed that Pedersen had pledged Company stock until after his resignation over eight months later.