Dhb Industries (AMEX:DHB)
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The law firm of Spector, Roseman & Kodroff, P.C.
announces that a securities class action lawsuit was commenced in the
United States District Court for the Eastern District of New York, on
behalf of purchasers of the common stock of DHB Industries, Inc.
("DHB" or the "Company") (AMEX:DHB) between April 29, 2004 through
August 29, 2005, inclusive (the "Class Period").
The Complaint alleges that the defendants violated the federal
securities laws by issuing materially false and misleading statements
contained in press releases and filings with the Securities and
Exchange Commission during the Class Period. Specifically, the
Complaint alleges defendants issued positive statements regarding
DHB's fast-growing business. However, they failed to publicly 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 and that serious concerns about their use
in body armor was growing in the law enforcement community. As a
result of failing to disclose this material information, the Defendant
failed to warn investors of the substantial risk that its Zylon
products posed to the Company's business.
Additionally, during the time in which the price of the Company's
securities was artificially inflated, and before its collapse, DHB
insiders, including defendants Brooks, Schlegel and Hatfield, sold a
total of 11,288,789 million shares of DHB common stock, reaping gross
proceeds of over $220 million. Of that amount, defendant Brooks sold
over 10.4 million shares for proceeds exceeding $204 million. The
average price at which insiders sold their DHB stock was $19.51.
On August 30, 2005, DHB issued a press release announcing that it
stopped using Zylon in its body armor after the National Institute of
Justice revoked its certification of Zylon-containing body armor.
Additionally, the Company disclosed that it would replace all Zylon
vests in the field. This replacement program would result in an
estimated $60 million charge in the third quarter of 2005. On this
news, the price of DHB common stock fell by 23 percent in one day,
from $6.66 per share on August 29, 2005 to $5.10 per share on August
30, 2005, on unusually heavy trading volume. DHB's tock price
continued to decline, falling to $4.58 by the close of August 31,
2005. The insiders who sold their shares during the Class Period, at
the average price of $19.51 per share, avoided tremendous losses.
If you purchased DHB securities during the Class Period, you may,
no later than November 8, 2005, move to be appointed as a Lead
Plaintiff in this class action. A Lead Plaintiff is a representative,
chosen by the Court, that acts on behalf of other class members in
directing the litigation. The Private Securities Litigation Reform Act
of 1995 directs Courts to assume that the class member(s) with the
"largest financial interest" in the outcome of the case will best
serve the class in this capacity. Courts have discretion in
determining which class member(s) have the "largest financial
interest," and have appointed Lead Plaintiffs with substantial losses
in both absolute terms and as a percentage of their net worth.
If you have sustained substantial losses in DHB securities during
the Class Period, please contact Spector, Roseman & Kodroff, P.C. at
classaction@srk-law.com for a more thorough explanation of the Lead
Plaintiff selection process. If you have relatively small losses, your
ability to participate in any recovery will be protected by the Lead
Plaintiff(s), and you need take no affirmative steps at this time.
If you wish to join this action or have any questions concerning
this notice or your rights or interests, please contact plaintiff's
counsel Robert M. Roseman or Andrew Abramowitz toll-free at
888-844-5862 or via e-mail at classaction@srk-law.com. For more
detailed information about the firm please visit its website at
http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia,
Pennsylvania, concentrates its practice in complex litigation
including actions dealing with securities laws, antitrust, contract
and commercial claims. The firm is active in major litigation pending
in federal and state courts throughout the United States. The firm's
reputation for excellence has been recognized on repeated occasions by
courts which have appointed the firm as lead counsel in numerous major
class actions involving violations of the federal securities laws and
the federal antitrust laws, and consumer fraud. As a result of the
efforts of the firm, and its members, hundreds of millions of dollars
have been recovered through judgments and settlements on behalf of
thousands of defrauded shareholders and companies.