In re DHB Industries, Inc. Class Action Litigation

Settled: July 08, 2008

On November 1, 2019, distribution checks were mailed to eligible claimants in the DHB Class Action, as a result of the Class's Settlement approved in 2008, its Supplemental Settlement approved in 2015, the Global Settlement Agreement reached with the United States and others in 2018, and the Class's 2018 petition to the U.S. Department of Justice for remission of assets restrained by the Government (and the resulting remission award) in connection with criminal proceedings against David H. Brooks.

Authorized Claimants' payments were calculated using the claims submitted in the Class Action and the Court-approved Plan of Allocation. Checks will become void after January 30, 2020 and unclaimed funds will be subject to redistribution.

If you have changed your address listed on the check you received, or if you require some other change to your check, please email classact@gilardi.com. If you did not receive a check and you believe you filed an eligible claim, please email classact@gilardi.com. When contacting the Claims Administrator, please provide as much information as possible, including your Class Action claim number(s) if available, the name and mailing address listed on your Class Action claim(s), and your current mailing address. If you are requesting a change of the claimant name originally listed on a claim for payment purposes, please also provide supporting documentation for your request. 

Labaton Sucharow LLP and its co-counsel (“Co-Lead Counsel”) previously announced the distribution of a fund of more than $73 million to DHB Class Members with previously recognized claims in In re DHB Industries, Inc. Class Action Litigation. This amount represents more than 89.5% of the $81,540,718.81 in recognized claims in the original class action settlement, approved almost 11 years ago.

On July 8, 2008, Judge Joanna Seybert of the United States District Court for the Eastern District of New York approved the settlement proposed by the parties in the securities fraud class action, In re DHB Industries, Inc. Class Action Litigation, No. 05-cv-04296 (E.D.N.Y.). The decision approving a related derivative settlement was appealed to the Second Circuit Court of Appeals and remanded to the District Court.

The settlement, which was valued at approximately $45 million, created a Fund in the amount of $34.9 million in cash and $9 million in stock, using the then current price of the company's stock. The settlement also provided for the company's adoption of sweeping corporate governance measures. Labaton Sucharow, as co-lead counsel with Robbins Geller Rudman & Dowd LLP, represents lead plaintiffs NECA-IBEW Pension Fund and George Baciu.

After the Settlement was approved, DHB filed for bankruptcy protection and the settlement proceeds were not distributed. DHB is now known as SS Body Armor I, Inc. Please see the Notice Regarding Supplemental Settlement Agreement for a summary of events since DHB declared bankruptcy and information about the Supplemental Settlement Agreement, which allows for the distribution of additional settlement proceeds. 

On July 9, 2015, the Bankruptcy Court approved the Supplemental Settlement.  On August 18, 2015, the District Court also approved the settlement. 

Even with these approvals, there were major obstacles to the completion of the settlement.  Although former DHB CEO David Brooks was not a party to the Supplemental Settlement, and was serving a 17-year sentence in federal prison for securities fraud and other offenses, he filed an appeal of the order approving the Supplemental Settlement in September 2015.  His estate continued to prosecute that appeal after Brooks died in prison in October 2016 and agreed to voluntarily dismiss it only in June 2017.

Later that same year, the principal stakeholders with a claim to Brooks’ assets restrained in connection with the federal criminal proceeding, including Co-Lead Counsel on behalf of the Class, came together in an effort to achieve a global settlement.  That effort culminated in a Global Settlement Agreement on October 25, 2018.

Class Members with questions about the case should contact Labaton Sucharow at 888-219-6877 (or settlementquestions@labaton.com).