Settled: July 08, 2008
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 a Supplemental Settlement Agreement, which if it becomes final would, among other things, allow for the distribution of the settlement proceeds.
On July 9, 2015, the Bankruptcy Court approved the Supplemental Settlement Agreement and on August 18, 2015, the District Court also approved the settlement. The approvals are subject to appeal and other conditions and we do not know when checks will be distributed to eligible class members.