Cohen Milstein Sellers & Toll PLLC Announces the Investigation of ZAGG Incorporated
WASHINGTON--(BUSINESS WIRE)-- Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether ZAGG Incorporated ("ZAGG" or the "Company") and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
Class action lawsuits were filed in the U.S. District Court for the District of Utah by other law firms on behalf of purchasers of the common stock of ZAGG Incorporated (Nasdaq: ZAGG) between February 28, 2012 and August 17, 2012, inclusive (the "Class Period").
The complaint alleges that ZAGG and certain of its officers and directors ("Defendants") misrepresented and/or failed to disclose that: (1) Robert G. Pedersen, former Chairman and CEO of ZAGG, had placed more than 50% of his ZAGG stock as collateral on margin; (2) as a result of Pedersen's reckless actions, ZAGG began a secret succession plan to replace him in December 2011; and (3) as a result of the foregoing, ZAGG's financial statements were materially false and misleading at all relevant times. On December 21, 2011, defendant Pedersen sold 345,200 shares of his ZAGG stock for approximately $2.6 million. The Form 4 for the sale stated that Pedersen had sold the shares to "meet an immediate financial obligation." On August 17, 2012, ZAGG announced that Pedersen had "stepped down as CEO and Chairman." The Company did not initially disclose the reason for Pedersen's abrupt departure. However, on the same day, Pedersen filed a Form 4 reporting that he had sold 515,000 shares of ZAGG stock on August 14 for approximately $4.2 million and disclosing that the shares "were sold to meet margin calls" on Pedersen's account.
On the last day of the Class Period, August 20, ZAGG filed an 8-K in which it stated that its board had "accepted the resignation of Pedersen" on August 17. Although the Company did not explicitly disclose the reason for Pedersen's resignation, the 8-K included a general discussion of the Company's policy prohibiting holders of at least 10% of ZAGG stock from engaging in speculative transactions involving ZAGG stock, such as holding those securities in a margin account. The price of ZAGG shares fell from $8.42 to $7.30 on August 20, representing a decline of approximately 13%.
During a conference call with analysts on August 28, ZAGG finally confirmed that Pedersen's resignation was in fact related to his sales of ZAGG stock to meet margin calls both in December 2011 and August 2012.
Cohen Milstein encourages all investors who purchased ZAGG common stock or former employees with information concerning this matter to contact the firm.
If you are a ZAGG shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein's Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at email@example.com. If you wish to serve as lead plaintiff, you must move the Court no later than November 5, 2012 to request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may retain Cohen Milstein Sellers & Toll PLLC or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.
Cohen Milstein Sellers & Toll PLLC has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Chicago, Philadelphia and West Palm Beach, and is active in major litigation pending in federal and state courts throughout the nation.
The firm's reputation for excellence has repeatedly been recognized by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen Milstein Sellers & Toll PLLC has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total over a billion dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:
Steven J. Toll, Esq.
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
West Tower, Suite 500
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email: firstname.lastname@example.org; email@example.com
KEYWORDS: United States North America District of Columbia