Zagg allegedly violated federal security laws

Every business owner has a duty to their customers as well as investors to remain open and honest, which includes disclosing all necessary information that may be imperative to these individuals. For instance, drug manufacturers are required to report any negative side effects to consumers while any company needs to disclose financial declines to their shareholders.

If business owners or CEOs find themselves in the midst of a lawsuit regarding these type of violations, they should confer with a Phoenix business lawyer to figure out their next step in the litigation proceedings.

Mobile device accessory provider Zagg Incorporated is one such company that has been accused of hiding information from its shareholders, according to Nasdaq. The law firm  Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit against the company and some of its chair holders due to alleged "false and misleading statements" regarding its operational business procedures and compliance policies.

The complaint reads that Zagg failed to disclose that the company's founder and chief executive officer, Robert Pedersen, had placed 50 percent of his shareholdings as collateral on personal loans as well as for margin calls.

The Business Wire reported that, as the company planned to replace Pederson, they had not revealed the true reasons behind his departure. In particular, the class action suit alleges that the company violated federal securities laws.

Any shareholders who invested in Zagg securities between February 28, 2012 and August 17, 2012 can apply to take part in this class action suit, but these shareholders have only until November 5 to do so.

Arizona businesses that need advice on disclosure issues or help with a lawsuit similar to the one faced by Zagg Incorporated should speak with business law attorneys in Phoenix.

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