Cases
Zebra Technologies Corporation
Corporate Governance / Derivative
Overview
Overview
- Date:
- 8/3/2018
- Case Caption:
- Weber v. Gustafsson, et al.
- Stock Symbol:
- ZBRA
- Status:
- Pending
- Court:
- U.S. District Court: District of Northen Illinois
Bragar Eagel & Squire, P.C. is investigating potential claims against Zebra Technologies Corporation (NASDAQ: ZBRA) on behalf of long-term stockholders. Our investigation concerns whether the board of directors of Zebra has breached their fiduciary duties to the company.
The Complaint alleges that throughout the Class Period, the Company made false and/or misleading statements and/or failed to disclose that: (a) There were severe integration issues associated with Zebra's acquisition of Motorola Enterprise; (b) Zebra was understating its income taxes through the end of FY15, had under-accrued certain 2015 estimates, most notably for its sales commission plan, and overstated the net realizable value of trade receivables acquired in connection with the Motorola Enterprise assets acquisition; (c) Zebra lacked both effective disclosure controls and procedures, as well as internal controls over financial reporting; (d) Because of the material weaknesses that were identified in its internal controls and procedures over financial reporting and disclosure, Zebra lacked the ability to accurately forecast pretax income and deferred taxes in a timely matter; and (e) Zebra's Class-Period financial statements were not prepared in accordance with GAAP and, therefore, were materially false and misleading.
On May 10, 2016, Zebra issued a press release announcing its financial results for the first quarter of 2016. Zebra reported first quarter revenue and non-GAAP EPS of $847 million and $1.01, respectively, significantly less than the $879 million in revenues and GAAP net income of $1.22 per share, respectively, the Company had led the investment community to expect - and less than its own prior guidance on February 25, 2016.
Following this news, shares of Zebra fell $11.12, or almost 18%, to close at $51.46 on May 10, 2016.
The Complaint alleges that throughout the Class Period, the Company made false and/or misleading statements and/or failed to disclose that: (a) There were severe integration issues associated with Zebra's acquisition of Motorola Enterprise; (b) Zebra was understating its income taxes through the end of FY15, had under-accrued certain 2015 estimates, most notably for its sales commission plan, and overstated the net realizable value of trade receivables acquired in connection with the Motorola Enterprise assets acquisition; (c) Zebra lacked both effective disclosure controls and procedures, as well as internal controls over financial reporting; (d) Because of the material weaknesses that were identified in its internal controls and procedures over financial reporting and disclosure, Zebra lacked the ability to accurately forecast pretax income and deferred taxes in a timely matter; and (e) Zebra's Class-Period financial statements were not prepared in accordance with GAAP and, therefore, were materially false and misleading.
On May 10, 2016, Zebra issued a press release announcing its financial results for the first quarter of 2016. Zebra reported first quarter revenue and non-GAAP EPS of $847 million and $1.01, respectively, significantly less than the $879 million in revenues and GAAP net income of $1.22 per share, respectively, the Company had led the investment community to expect - and less than its own prior guidance on February 25, 2016.
Following this news, shares of Zebra fell $11.12, or almost 18%, to close at $51.46 on May 10, 2016.