Huge Insider Trading Alleged: Scott + Scott, LLC Files First Securities Fraud Case Against DHB Industries, Inc.
COLCHESTER, Conn., September 12, 2005 – 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. The complaint alleges huge insider sales by defendants as stated below.
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, LLC will provide you with case materials, answer all questions regarding your participation and rights and assist you with other services that the firm provides. There is no cost or fee to you. Contact Scott + Scott, LLC partner Neil Rothstein at [email protected] (800/332-2259, ext. 22 or cell 619/251-0887) or attorney Amy K. Saba at [email protected] (800/332-2259, ext. 26).
The complaint filed on September 9, 2005 by Scott + Scott, LLC alleges that during the Class Period, DHB and certain individual defendants including CEO David Brooks, violated the Securities and 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; (c) allowed defendants to sell approximately $195.4 million of their own shares at inflated prices; and (d) caused members of the Class to purchase DHB’s publicly traded securities at inflated prices.
“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,” says Seth Jayson from fool.com in a September 8, 2005 article.
The plaintiff is represented by Scott + Scott, LLC, which has expertise 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.