Zebra Technologies Corporation
Robbins Arroyo LLP: Zebra Technologies Corporation (ZBRA) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Zebra Technologies Corporation (NasdaqGS: ZBRA). The complaint is brought on behalf of all purchasers of Zebra securities between March 17, 2015 and May 9, 2016, for alleged violations of the Securities Exchange Act of 1934 by Zebra’s officers and directors. Zebra, together with its subsidiaries, designs, manufactures, sells, and supports direct thermal and thermal transfer label printers, radio frequency identification printer/encoders, dye sublimation card printers, real-time locating solutions, related accessories, and support software worldwide.
Zebra Accused of Misrepresenting Motorola Enterprise Acquisition
According to the complaint, Zebra officials made positive statements in press releases and investor conference calls about the company’s acquisition of Motorola Enterprise, the company’s business metrics, and financial prospects. Although Zebra emphasized satisfaction with the progress of the company’s integration efforts and that the new Zebra is “strategically better and stronger,” Zebra officials failed to mention that there were severe integration issues associated with Motorola Enterprise and that Zebra was understating its income taxes through the end of fiscal year 2015. On May 10, 2016, Zebra reported first quarter 2016 revenue and non-GAAP earnings per share of $847 million and $1.01, respectively—significantly less than the $879 million in revenues and GAAP net income of $1.22 per share that Zebra had led the investment community to expect. Zebra further confirmed that it found defects in its internal controls in 2015 that had impaired its ability to accurately forecast its pretax income and deferred taxes in a timely manner. On this news, Zebra’s stock dropped more than $11 per share, or approximately 18%, to close at $51.46 per share on May 10, 2016.
Zebra Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.