Ryan & Maniskas, LLP ( www.rmclasslaw.com/cases/zagg) announces that a class action lawsuit 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: ZAGG) between February 28, 2012 and August 17, 2012, inclusive (the “Class Period”).
For more information regarding this class action suit, please contact Ryan & Maniskas, LLP (Richard A. Maniskas, Esquire) toll-free at (877) 316-3218 or by email at email@example.com or visit: www.rmclasslaw.com/cases/zagg.
The Complaint alleges that the defendants issued false and/or misleading statements, and failed to disclose material facts, related to the sale of 860,200 shares of Zagg stock by Richard Pedersen, Zagg’s founder and CEO, which he used as collateral on personal loans and sold to satisfy margin calls. The Complaint alleges that the defendants became aware of Pedersen’s pledging of Zagg stock as collateral to meet margin calls as early as December 2011 but instead of disclosing that information, initiated a succession plan to replace Pedersen as CEO while concealing the true reason behind Pedersen’s departure.
On August 17, 2012, Zagg announced that Pedersen had resigned for unspecified reasons. However, beginning on August 20, 2012, the truth emerged that Pedersen’s departure was “entirely related to the margin calls situation that started last December and unfortunately surfaced again two weeks ago.” Zagg revealed that Pedersen had sold 345,000 shares of Zagg stock on December 21, 2011 and an additional 515,000 shares on August 14, 2012 to satisfy margin calls.If you are a member of the class, you may, no later than November 5, 2012, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.