An appeals court has upheld a U.S. District Court judge's decision to toss out a lawsuit by Zagg shareholders that alleged former CEO Robert Pedersen II's sudden sale of stock in 2012 had harmed the value of their shares.
The U.S. 10th Circuit Court of Appeals on Tuesday upheld a ruling by U.S. District Judge Dee Benson who said the shareholder suit had failed to show Pedersen knowingly misled investors before selling shares to meet a margin call.
Such a call is typically a demand by a broker for additional money from someone who bought shares with borrowed monies and used the stock as collateral.
Pedersen resigned in August of 2012 after disclosure that he had sold millions of dollars worth of shares to meet several margin calls.
Pedersen cofounded the Salt Lake City company that makes screen shields and other accessories for cell phones and tablets.
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