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Zagg, Inc ZAGG Securities Lawsuit

Company: Zagg, Inc
Ticker Symbol: ZAGG
Class Period: Feb-28-12 to Aug-17-12
Date Filed: Sep-13-12
Lead Plaintiff Deadline: Nov-12-12
Court: District of Utah
New York, NY: A securities 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 class period applies to investors who purchased Zagg securities between February 28, 2012 and August 17, 2012 (the "Class Period").

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 acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.

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Published on Sep-14-12


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