DHB Industries Class Action Litigation Website
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Welcome to the DHB Industries Class Action Litigation Website

This website has been established to provide general information related to the DHB Industries, Inc. ("DHB") Class Action Litigation; to summarize the proceedings that have occurred since the United States District Court for the Eastern District of New York (the "Court") initially approving the Prior Settlement on July 8, 2008 and recent events including the execution of a supplemental agreement and addendum that will allow distributions of certain proceeds of the Prior Settlement to Class Members to occur.

The deadline to submit a timely claim in the DHB Industries Class Action Litigation Settlement was October 16, 2007.

This is a Securities Class Action that is pending before the Honorable Judge Joanna Seybert. Defendant DHB was a manufacturer and provider of bullet- and projectile-resistant garments, fragmentation protective vests, slash and stab protective armor and related ballistic accessories, they also manufactured and distributed sports medicine, health support and other products.

The Prior Settlement was approved by the Court on July 8, 2008. An appeal was taken from the Court’s approval of the settlement of a related derivative action (the “Derivative Action”), and on September 30, 2010, the Second Circuit Court of Appeals vacated and remanded the judgment approving the Derivative Action settlement, which impacted the occurrence of the Effective Date in connection with the Prior Settlement. On April 14, 2010, DHB (now referred to as “Point Blank” or, with certain other affiliated entities, the “Debtors”) commenced bankruptcy proceedings under chapter 11 of the U.S. Bankruptcy Code. On September 17, 2010, Point Blank moved to reject the Prior Settlement, which motion was granted by the Bankruptcy Court on December 22, 2010. An appeal from that order was taken and is still pending.  

On November 16, 2010, Point Blank filed an action in the Bankruptcy Court against, among others, counsel to the Lead Plaintiffs in the Class Action, seeking a return of the settlement funds that were transferred to escrow (the “Escrowed Funds”) pursuant to the Prior Settlement. Motions to dismiss and related motions have been filed in that action and have been denied (and appealed) or stayed. Lead Plaintiffs in the Class Action have also filed claims against Point Blank in the bankruptcy proceedings based on the same facts alleged in the Class Action.

In and after October 2007, David Brooks (Point Blank’s former Chief Executive Officer), Sandra Hatfield (Point Blank’s former Chief Operating Officer), and Dawn Schlegel (Point Blank’s former Chief Financial Officer) were indicted for crimes based on, among other things, the same conduct alleged in the Class Action and/or the Derivative Action. All three were subsequently convicted or pled guilty to one or more criminal counts. In connection with the indictment of David Brooks, the Government restrained a significant amount of his assets (the “Restrained Assets”), and additional funds posted as bail (the “Bail Funds”) were subsequently forfeited. In November 2010 and December 2011, the Court conducted extensive proceedings in David Brooks’ criminal action to determine the amount of traceable assets that David Brooks obtained as a result of his criminal offenses. As a result of these proceedings, the amount of Restrained Assets potentially available for restitution to victims (including claimants in the Class Action) was approximately $185.7 million, inclusive of the Bail Funds and approximately $60 million that is the subject of an order of forfeiture. Lead Plaintiffs (on behalf of claimants in the Class Action) and Point Blank asserted competing claims to this money in connection with the criminal case against David Brooks and the proceeding therein to determine appropriate restitution. The Government made recommendations to the Court regarding its view of the respective amounts claimants in the Class Action, other investor victims, and Point Blank were entitled to, and these recommendations were significantly more favorable to Point Blank than to the claimants in the Class Action.

On March 27, 2015, the Court ordered restitution (the “Restitution Order”) in the amount of $53.9 million to Point Blank and $37.5 million to the investor victims of David Brooks’ crimes, including members of the Class in the Class Action. Under the terms of the Supplemental Settlement Agreement, as more fully described in the Notice, the restitution award to investor victims will be significantly augmented and the risk that none of the Escrowed Funds will be available for Class Members will be eliminated.

The complicated procedural posture of the various proceedings summarized above has prevented the Prior Settlement from becoming effective, and prevented any distribution of the proceeds of the Prior Settlement to claimants in the Class Action. 

Beginning in June 2011, therefore, Lead Plaintiffs and the Debtors embarked on negotiations with David Brooks and various other members of the Brooks family to resolve the matters described above. On December 22, 2011, these parties signed a global settlement term sheet. Thereafter, the parties commenced the process of seeking approval of the global settlement from the Government and the Court. However, David Brooks abandoned this global settlement in late 2013.

Thereafter, Lead Plaintiffs and the Debtors agreed to continue settlement negotiations among themselves, reached agreement, and executed a term sheet on November 25, 2014, followed by a settlement agreement on February 5 and 6, 2015. As a result of the entry of the Restitution Order, the settlement agreement was amended and the Supplemental Settlement Agreement was executed on or about May 4, 2015 to take into account the impact of the Restitution Order. An Addendum to the Supplemental Settlement Agreement was executed on or about June 10, 2015 (the “Addendum”) to resolve an Objection to the Supplemental Settlement submitted by the Official Committee of Equity Security Holders of Point Blank Solutions, Inc. (the “Equity Committee”) in connection with the Debtors’ motion seeking the approval of the Bankruptcy Court for the Supplemental Settlement in the bankruptcy proceedings.

Plaintiffs' counsel in the Class Action is Robbins Geller Rudman & Dowd LLP and Labaton Sucharow LLP.

Although the information on this website is intended to assist you, it does not replace the information contained in the Notice Regarding Supplemental Settlement Agreement and other case documents which are provided on this website. We recommend that you read the Notice and other relevant case documents carefully.