On August 17, 2012, ZAGG announced that Pedersen had " stepped down as CEO and Chairman ." The Company did not initially disclose the reason for Pedersen's abrupt departure. However, on the same day, Pedersen filed a Form 4 reporting that he had sold 515,000 shares of ZAGG stock on August 14 for approximately $4.2 million and disclosing that the shares " were sold to meet margin calls " on Pedersen's account.