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ZAGG Conference Call Raises More Questions than Answers about Pedersen's Resignation

Updated

Late Tuesday afternoon August 28, 2012, ZAGG Inc. (NADAQ: ZAGG) held a conference call with investors in an effort explain the sudden resignation of its co-founder Robert Pedersen as its CEO and Chairman of the Board of Directors on August 17. However, the company's explanation of the reasons behind Pedersen's resignation raises more questions than it answers.

Background

On Friday August 17, 2012 Robert Pedersen resigned from his posts as CEO and Chairman of ZAGG. The company’s press release did not mention any reason for his resignation. However, on that very same day after the market closed Robert Pedersen filed a Form 4 with the Securities and Exchange Commission. It disclosed that he sold 515,000 shares at an average price of $8.2214 per share on August 14, just three days before ZAGG announced that he resigned from the company. Pedersen sold 512,240 of those shares to "to meet margin calls" and 2,760 shares were sold separately. He collected $4.234 millio…

ZAGG CEO Sold Stock Three Days before His Resignation

Updated at 8:26 AM ET

On Friday, August 17, 2012, ZAGG Inc. (NASDAQ: ZAGG) surprised investors and announced that its co-founder Robert G. Pedersen II resigned from his posts as CEO and Chairman of the company. The press release did not mention any reason for his resignation. The announcement was made after the stock market closed.

However, on that very same day after the market closed Robert Pedersen filed a Form 4 with the Securities and Exchange Commission. It disclosed that he sold 515,000 shares at an average price of $8.2214 per share on August 14, just three days before ZAGG announced that he resigned from the company. Pedersen sold 512,240 of those shares to "to meet margin calls" and 2,760 shares were sold separately. He collected $4.234 million in gross proceeds from his sales of stock and it appears that most of that amount was used to satisfy margin calls.

Back on December 21, 2011, Pedersen sold 345,200 shares at an average price of $7.5248 per share and receive…