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If you purchased a significant amount of shares of this company you have certain options and for certain investors are short and strict deadlines running. Investors should contact the Shareholders Foundation, Inc.
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To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Lawsuit Overview
Settlement Overview
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<p>On Wednesday, June 25th 2008, Judge Joanna Seybert of the U.S. District Court for the Eastern District of New York approved the settlement $34.9 million settlement reached with body armor company Point Blank Solutions Inc., formerly DHB Industries Inc., in a securities class action as well as related shareholder derivative action. Derivative actions were brought by shareholders on behalf of a company and against its officers and directors. The lawsuit alleged that officers and directors of the body-armor maker hid problems that led to a recall of thousands of its protective vests. The plaintiffs accused, that they were blindsided when the company’s stock plunged early in 2005 after Wall Street learned about product quality problems at two subsidiaries that produced body armor for military and police use. The lawsuit accused that the officers and directors dumped more than $83 million of their stock the day before the company acknowledged that its vests failed the Marine Corps’ test standards. The lawsuit claims that company executives falsely told customers and investors that their products met the highest standards while they knew they were seriously defective. In the statement DHB Industries Inc. said it is not admitting any wrongdoing and that it agreed to the settlement only because of the uncertainty and expense of the litigation. According to the company’s Web site it would pay most of the money — $34.9 million in cash plus 3.2 million shares of stock — to plaintiffs in the consolidated securities fraud class action. The cash and stock have a value of nearly $40 million. The company’s Web site statement also said it would pay $300,000 and adopt stricter standards for reporting financial and production results to settle the parallel derivative action. Part of the settlement of the derivative suit also includes the immediate resignation of Brooks, who had been placed on leave less than a week before the settlement announcement. The company announced also that several directors will also leave within a year.</p>