SAN FRANCISCO, Aug. 18, 2017 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP alerts investors in Zebra Technologies Corporation (NASDAQ:ZBRA) to the securities class action filed in the United States District Court for the Eastern District of New York and to the September 25, 2017 Lead Plaintiff deadline.
If you purchased or otherwise acquired securities of ZBRA between March 17, 2015 and May 9, 2016 and suffered losses contact Hagens Berman Sobol Shapiro LLP. For more information visit:
https://www.hbsslaw.com/cases/ZBRA
or contact Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000 or emailing ZBRA@hbsslaw.com.
Before the class period, during April 2014, Zebra announced it was acquiring Motorola Enterprise for $3.45 billion in cash. This acquisition closed on October 27, 2014.
Throughout the class period, Defendants repeatedly made positive statements about the Motorola Enterprise acquisition which, as of December 31, 2015, was responsible for 65% of Zebra’s net sales and 49% of its operating income. By comparison, the Legacy Zebra segment was responsible for 35% of Zebra’s net sales and 51% of its operating income.
On February 29, 2016, Defendants disclosed in Zebra’s 2015 Form 10-K that the Company’s internal controls over financial reporting were not effective due to a material weakness related to the process to prepare and review its quarterly and annual income tax provision. Nonetheless, Defendants maintained no restatements of prior quarterly or annually filed financial statements were necessary.
On May 10, 2016, Defendants disclosed in Zebra’s first quarter 2016 Form 10-Q that as of April 2, 2016, the Company’s internal controls over financial reporting were not effective. Still, they maintained that no restatements were necessary. This news drove the price of Zebra shares down over $11, or approximately 18%, to close at $51.46 per share that day.
After the class period, on August 9, 2016, Defendants disclosed in Zebra’s second quarter 2016 Form 10-Q that as of July 2, 2016, the Company’s internal controls over financial reporting were not effective and again claimed no restatement was necessary.
Finally, on November 1, 2016, Defendants admitted restatements of Zebra’s financial statements for its 2015 fiscal year and its first and second quarters of 2016 were required after all. Defendants explained “[t]he restatement will correct the financial statements for known errors, including those that were previously disclosed in filings with the Securities and Exchange Commission (“SEC”) as immaterial.” Defendants further explained the restatements would correct improper accounting for income taxes, its sales commission plan, and the net realizable value of trade receivables acquired in connection with the company’s acquisition of the Enterprise business of Motorola Solutions, Inc.
“The Defendants’ apparent admission they knew Zebra’s accounting was improper does not square with their positive statements about the Enterprise acquisition and repeated refusal to correct the Company’s financial statements,” said Hagens Berman partner Reed Kathrein. “As a result, Zebra investors have been significantly harmed.”
Whistleblowers: Persons with non-public information regarding ZBRA should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email ZBRA@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national investor-rights law firm headquartered in Seattle, Washington with offices in 10 cities. The Firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the Firm and its successes can be found at www.hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.