Dhb Industries (AMEX:DHB)
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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."