A shareholder class action lawsuit has been filed on behalf of investors of Zagg Inc (NASDAQ:ZAGG). The lawsuit alleges possible violations of US securities laws stemming from ZAGG stock dealings of the company's former CEO. The ZAGG shareholder lawsuit alleges that the former CEO, Robert G. Pedersen, had made a margin call using his ZAGG stock as collateral while borrowing substantial amounts. He was then forced to dump a significant amount of ZAGG stock to meet his margin call. Pedersen had a total of nearly 2 million shares tied up in this margin call, which were eventually sold to meet his obligations. None of this was disclosed to investors, and as such, is a breach of US securities laws and may have significantly effected shareholders.