NEW YORK--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/zebra) today announced that a class action has been commenced by an institutional investor on behalf of purchasers of Zebra Technologies Corporation (“Zebra” or the “Company”) (NASDAQ: ZBRA) common stock during the period between March 17, 2015 and May 9, 2016 (the “Class Period”). This action was filed in the United States District Court for the Eastern District of New York and is captioned City of Warren Police and Fire Retirement System v. Zebra Technologies Corp, et al., No. 2:17-cv-04412.
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/zebra. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Zebra and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Zebra designs, manufactures, and sells a wide range of products that capture and move data, including, mobile computers, barcode scanners and imagers, radio frequency identification device readers, wireless LAN solutions and software, and specialty printers for barcode labeling and personal identification.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements and/or failed to disclose adverse information regarding Zebra’s business, prospects and financial results. Specifically, defendants failed to disclose that Zebra had understated its income taxes through the end of 2015, underaccrued certain 2015 estimates, in particular with respect to its sales commission plan, and overstated the net realizable value of trade receivables acquired in connection with the Company’s acquisition of Motorola’s Enterprise division. Zebra also failed to disclose the impact of material weaknesses identified in its internal controls and procedures over financial reporting and disclosure, which caused the misstatements and rendered the Company’s financial guidance for 2015 and the first and second quarters of 2016 materially false and misleading. As a result of defendants’ false statements, Zebra common stock traded at artificially inflated prices during the Class Period.
On May 10, 2016, before the open of trading, Zebra announced disappointing financial results for its first quarter of 2016, stating that “first quarter results [were] below . . . expectations, with lower sales and earnings reflecting the continuation of a cautious enterprise spending environment.” Also on May 10, 2016, Zebra filed its quarterly report on Form 10-Q with the SEC for the first quarter of 2016, which confirmed that Zebra had found defects in its internal controls in 2015 that had impaired its ability to accurately forecast its pretax income and deferred taxes. On this news, the price of Zebra stock dropped more than $11 per share, from a close of $62.58 per share on May 9, 2016 to close at $51.46 per share on May 10, 2016, a one-day decline of approximately 18%, and a 56% decline from the stock’s Class Period high.
Plaintiff seeks to recover damages on behalf of all purchasers of Zebra common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller is widely recognized as the leading law firm advising and representing U.S. and international investors in securities litigation and portfolio monitoring. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For the third consecutive year, the Firm ranked first in both the total amount recovered for investors and the number of securities class action recoveries in ISS's SCAS Top 50 Report. Robbins Geller attorneys have shaped the law in the areas of securities litigation and shareholder rights and have recovered tens of billions of dollars on behalf of the Firm’s clients. Robbins Geller not only secures recoveries for defrauded investors, it also implements significant corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit rgrdlaw.com/cases/zebra/ for more information.