Investor Notice: Chitwood Harley Harnes LLP Gives Notice Of Its Filing Of Complaint Against DHB Industries, Inc., and Encourages
20 September 2005 - 6:38AM
Business Wire
Chitwood Harley Harnes LLP announces that it has filed a lawsuit
seeking class action status in the United States District Court for
the Eastern District of New York on behalf of all persons (the
"Class") who purchased the securities of DHB Industries, Inc.,
(Amex: DHB) ("DHB" or the "Company") during the period April 21,
2004 and August 29, 2005, inclusive (the "Class Period"). The
Defendants are DHB Industries, Inc., David H. Brooks, Sandra
Hatfield, Cary L. Chasin, Jerome Krantz, Barry Berkman, Gary
Nadelman and Dawn Schlegel. A copy of the complaint will be
available on our website, www.chitwoodlaw.com, until expiration of
the lead plaintiff deadline, November 8, 2005. If you have
questions about this case or your rights as a class member or wish
to submit your transaction information to our firm, you may contact
us through our website, www.chitwoodlaw.com by clicking on DHB or
by emailing Katie King at kking@chitwoodlaw.com or Lauren S.
Antonino, Esq. at lantonino@chitwoodlaw.com or by calling
1-888-873-3999 extension 6826 (Ms. King) or 6888 (Ms. Antonino).
The Complaint alleges that during the Class Period, DHB violated
Sections 10(b) and 20(a) of the Securities Exchange Act of 1934,
SEC Rule 10b-5. The Complaint alleges that defendants' Class Period
positive representations regarding DHB's fast-growing business,
disseminated in press release and SEC filings, were materially
false and misleading because they failed to disclose that a
material portion of the Company's bulletproof vests contained a
material amount of Zylon fibers whose effectiveness at stopping
bullets degraded over time. By the beginning of the Class Period,
the Complaint alleges, defendants knew, or recklessly disregarded,
that vests containing Zylon could potentially fail to stop bullets
because of fiber degradation, and that serious concerns about their
use in body armor was growing in the law enforcement community.
Defendants, however, failed to warn investors of the palpable and
substantial risk that its Zylon products posed to the Company's
business. The Complaint charges, inter alia, that: (1) DHB's body
armor products were unsafe and defective; (2) despite knowledge of
this, the Company continued to falsely represent that its body
armor products were safe and of high quality; (3) Defendants knew
and/or recklessly disregarded that continued sales of its unsafe
and defective body armor products could have a material adverse
effect on DHB's finances; and (4) DHB lacked adequate internal
controls and, therefore, failed to determine the true financial
impact of withdrawal of any of its products. During the Class
Period, defendants sold millions of dollars worth of stock in the
Company, despite knowledge of the foregoing. On August 30, 2005,
the truth began to emerge. DHB announced that it would take a
charge of up to $60 million in the third quarter to discontinue
production of certain bullet-proof vests because of safety
concerns. Following this announcement, shares of DHB, on August 30,
2005, fell $1.56 per share, or 23.42 percent, to close at $5.10 per
share on unusually heavy trading volume. If you purchased DHB
securities between period April 21, 2004 and August 29, 2005, you
may qualify to serve as lead plaintiff on behalf of the Class. All
motions for appointment as lead plaintiff must be filed with the
Court no later than November 8, 2005. Any member of the proposed
Class may move the Court to serve as lead plaintiff in this action
through counsel of his or her choice, or may remain an absent class
member. There are certain legal requirements to serve as lead
plaintiff, which we would be pleased to discuss with you. Chitwood
Harley Harnes LLP is a class action firm that concentrates its
nationwide practice in representing victims of securities fraud and
corporate mismanagement, as well as other complex litigation.
Chitwood Harley Harnes has been appointed lead counsel in major
actions throughout the United States and has been instrumental in
recovering billions of dollars on behalf of its clients. Clients
and courts alike have praised the results achieved by Chitwood
Harley Harnes. Recently, the federal judge in the BankAmerica
Securities Litigation, which resulted in one of the highest
recoveries ever in a private securities class action, commented
favorably on counsel's performance stating: "Class members were
well served by experienced attorneys who, through considerable time
and effort, obtained a significant recovery for their clients,"
and, "(a)s the Court has remarked throughout this litigation, class
counsel ... have performed at exceptionally high levels, and all
parties have been exceedingly well represented."
Dhb Industries (AMEX:DHB)
Historical Stock Chart
From Jan 2025 to Feb 2025
Dhb Industries (AMEX:DHB)
Historical Stock Chart
From Feb 2024 to Feb 2025