Then, on April 27, 2012, the Company filed a definitive proxy statement on a Schedule 14A (the “Proxy”). The Proxy contained the unanimous recommendation of the Company’s board of directors (the “Board”) that Zagg shareholders vote in favor of, inter alia, the reelection of all five of the Company directors, including Defendant Pedersen. The Board authorized the filing of this Proxy without any reference to Pedersen’s use of the Company stock as collateral. Pedersen was subsequently reelected to a new term as a Company director.Finally, on August 17, 2012, the Company disclosed the Pedersen had “stepped down as CEO and Chairman,” effective immediately. It was later revealed that Pedersen had resigned after selling shares of the Company stock to meet margin calls. Further, due to the “margin call situation,” the Company hired Defendant Hales as its President and Chief Operating Officer in December of 2011, and that Hales had been responsible for “much of the day to day responsibilities” of the Company since well before Pedersen’s resignation. On this news, shares of the Company declined more than 13% from a close of $8.42 per share on August 17, 2012 to $7.30 per share on August 20, 2012, on trading volume of over 4 million shares. If you wish to serve as lead plaintiff, you must move the Court no later than November 5, 2012. A lead plaintiff is a representative party acting 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. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.Attorney advertising. Prior results do not guarantee a similar outcome.