Wednesday, May 9, 2012
Zagg Threatens Legal Action Against Blogger
Salt Lake City-based Zagg is threatening to "aggressively pursue its legal rights" against a blogger, which the firm said accused the maker of mobile device accessories with manipulation of its financial results. In a terse statement, Zagg--which says it normally does "not comment on blog posts"--said the blog purposefully distorts information and erroneously references financial results from the company, and that it will be also be reporting the matter to the Securities and Exchange Commission. It appears that the statement might have come as a result of a post on Seeking Alpha last week, where Nicholas Pardini, a analyst at hedge fund Nomadic Capital Partners, claimed that Zagg is "defrauding investors through channel stuffing" and that its sales numbers do not match its earnings claims.