July 23, 2012 (Shareholders Foundation) -- An investigation on behalf of investors in Zagg Inc (NASDAQ:ZAGG) shares over potential securities laws violations by certain officers and directors at Zagg Inc in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Zagg Inc (NASDAQ:ZAGG) concerning whether the company, certain of its officers and directors, or others have possibly violated federal securities laws. Specifically, the investigation concerns whether certain executive officers and directors of ZAGG breached their fiduciary duties in connection with, among other things, certain related party transactions. Specifically, the investigation concerns a related party transaction in which the Company pursued a transaction with Teleportall, LLC for the development of a consumer electronics product known as the ZAGGbox.
Zagg Inc advanced millions to Teleportall, LLC to develop the product but never received it. The agreement was ultimately terminated after Zagg Inc determined that Lorence Harmer, a former member of ZAGGs board of directors and chairman of the Audit Committee in 2009, who introduced ZAGG to Teleportall, LL, had not, contrary to what was agreed to, divested himself of his interest in Teleportall, but instead retained an indirect ownership interest of 25% in Teleportall as well as other entities potentially affiliated with the ZAGGbox.

Zagg Inc (NASDAQ:ZAGG) reported that its annual Revenue rose from $19.79million in 2008 to $179.12million in 2011 and its Net Income over the same time period increased from $2.10million to $18.25million.

Shares of Zagg Inc (NASDAQ:ZAGG) rose from as low as $2.11 in May 2010 to as high as $16.20 in July 2011.

NASDAQ:ZAGG shares closed on July 23, 2012, at $11.05 per share.