Scott + Scott, LLC Files Class Action Lawsuit Against DHB Industries, Inc.
September 26 2005 - 6:52PM
Business Wire
Scott + Scott, LLC (http://www.scott-scott.com) represents
client-shareholders in a securities class action filed in the
United States District Court for the Eastern District of New York
against DHB Industries, Inc. (Amex: DHB) and individual defendants.
Purchasers of DHB securities between April 21, 2004 and August 29,
2005, inclusive (the "Class Period") are members of the purported
class. DHB designs, develops, manufactures and markets protective
armor through its subsidiaries, Point Blank Body Armor, Inc. and
Protective Apparel Corporation of America. If you wish to discuss
this action or have questions concerning this notice or your rights
as a class member, you may contact this firm for more information.
Scott + Scott will provide you with case materials, answer all
questions regarding your participation and rights and assist you
with other services the firm provides. There is no cost or fee to
you. Contact Scott + Scott partner Neil Rothstein at
nrothstein@scott-scott.com (800/332-2259, ext. 22 or cell
619/251-0887) or attorney Amy K. Saba at asaba@scott-scott.com
(800/332-2259, ext. 26). The complaint filed on September 9, 2005
by Scott + Scott alleges that during the Class Period, DHB and
certain individual defendants, including CEO David Brooks, violated
the Securities Exchange Act of 1934 by making false statements or
failing to disclose adverse facts known to them about DHB.
Defendants' fraudulent scheme, it is alleged: (a) deceived the
investing public regarding DHB's prospects and business; (b)
artificially inflated the prices of DHB's publicly traded
securities; and (c) caused members of the Class to purchase DHB's
publicly traded securities at inflated prices. It is also alleged
that while DHB's securities were artificially inflated, insiders
sold over $220 million of common stock. A September 8, 2005 article
about DHB appearing in The Motley Fool and authored by Seth Jayson
states: "Now that (DHB) has cratered to one-fourth its former high
price, I don't see any insider buying. Instead, I see insiders
granting themselves a giant pile of warrants, including a ludicrous
1.5 million to (CEO David) Brooks at a $1 strike price, vesting
immediately -- with another 750,000 vesting each year until 2010
... Mix in overly generous housing and personal benefits and a slew
of creepy related-part transactions that enrich family members, and
you can only come to the conclusion that Brooks believes that
what's his is his, and what's yours is his too." The plaintiff is
represented by Scott + Scott, LLC, which has significant experience
in prosecuting investor class actions. The firm dedicates itself to
client communication and satisfaction and currently is litigating
major securities, antitrust and employee retirement plan actions
throughout the United States. The firm represents pension funds,
charities, foundations, individuals and other entities worldwide.
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