Robbins Umeda LLP Announces an Investigation of ZAGG Inc. on behalf
of ZAGG Shareholders
SAN DIEGO and SALT LAKE CITY, Nov.
19, 2012 /PRNewswire/ -- Shareholder rights firm
Robbins Umeda LLP is investigating possible breaches of fiduciary
duty and other violations of the law by certain officers and
directors at ZAGG Inc. (NASDAQ-GS: ZAGG).
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http://photos.prnewswire.com/prnh/20111014/ROBBINSUMEDALOGO)
Robbins Umeda LLP is investigating allegations that ZAGG's
founder and former Chief Executive Officer, Robert G. Pedersen II, made secret collateral
pledges with his company stock. Allegedly, due to Mr.
Pedersen's actions, ZAGG's board of directors transferred the
day-to-day management of ZAGG from Mr. Pedersen to Randall L. Hales without informing the public.
In December 2011, the ZAGG
board of directors discovered that Mr. Pedersen had pledged a
substantial amount of his company stock, constituting more than 50%
of his stake in the company, as collateral on margin calls.
After learning this fact, the board of directors initiated a
secret plan to remove Mr. Pedersen as CEO and to appoint Mr. Hales
as his successor. Despite the creation of the succession
plan, on April 27, 2012, ZAGG filed a
Proxy Statement with the U.S. Securities and Exchange Commission
that failed to disclose that Mr. Pedersen was no longer running the
company and that he had pledged a substantial amount of his
personally held company stock as collateral.
On August 17, 2012, ZAGG disclosed
that Mr. Pedersen had "stepped down as CEO and Chairman," effective
immediately. It was also revealed that Mr. Pedersen had resigned
after selling 515,000 shares of ZAGG common stock on August 14, 2012, at prices ranging between
$8.10 and $8.43, to meet margin
calls. On August 28, 2012, in a
conference call, ZAGG revealed that Mr. Pedersen had sold an
additional 1.2 million shares of ZAGG stock to meet margin
requirements. Additionally, this conference call informed the
investing public that Mr. Hales had been installed as ZAGG's
President and Chief Operating Officer in December 2011, when the Board first discovered
Mr. Pedersen's "margin call situation," well before Mr. Pedersen's
resignation.
Robbins Umeda LLP highlights that ZAGG shareholders have the
option to pursue a shareholder derivative action, through which
shareholders aim to hold insider wrongdoers accountable for their
actions, prevent future misconduct, and bring long-term value back
to the company. Concerned shareholders who would like more
information about their rights and potential remedies can contact
attorney Darnell R. Donahue at (800)
350-6003, ddonahue@robbinsumeda.com, or via the shareholder
information form on the firm's website.
Robbins Umeda LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The firm
represents individual and institutional investors in shareholder
derivative and securities class action lawsuits, and has helped its
clients realize more than $1 billion
of value for themselves and the companies in which they have
invested. For more information, please go to
http://www.robbinsumeda.com.
Press release link:
http://www.robbinsumeda.com/shareholders-rights-blog/zagg-inc/
Attorney Advertising.Past results do not guarantee a similar
outcome.
Contact:
Robbins Umeda LLP
Darnell R. Donahue
Info@robbinsumeda.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsumeda.com
SOURCE Robbins Umeda LLP