According to the law firm press release, 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 April 18, 2018, the Court issued an Order appointing Lead Plaintiff and Counsel and consolidating cases. Lead Plaintiff filed a consolidated amended Complaint on June 18. On August 23, 2019, this case was transferred to the Northern District of Illinois under Docket 19-CV-05782. Lead Plaintiff filed a consolidated second amended Complaint on November 22. Defendants filed a Motion to Dismiss the consolidated second amended Complaint on January 21, 2020. On October 16, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiff filed a notice appealing the Court's Dismissal Order on November 13.