
Newman Ferrara LLP Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Zagg, Inc.
Newman Ferrara LLP announces that a class action lawsuit has been filed
in the U.S. District Court for the District of Utah against Zagg, Inc. ("Zagg")
(Nasdaq: ZAGG) and certain of its officers and directors, alleging violations
of federal securities laws.
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.
Investors
who purchased shares of Zagg stock during the Class Period and lost more than
$100,000 are encouraged to contact Newman
Ferrara attorney Roy Shimon at rshimon@nfllp.com or call (212)
619-5400 to discuss this lawsuit or the Lead
Plaintiff process.
Newman Ferrara maintains a multifaceted practice based in New York City with attorneys specializing in complex commercial and multi-party litigation, securities fraud and shareholder litigation, consumer protection, civil rights, and real estate. For more information, please visit the firm website at www.nfllp.com .
CONTACT:
Newman Ferrara LLP
Attorney: Roy Shimon
1250 Broadway, 27th Fl.
New York, NY 10001
Tel. 212.619.5400