Securities Class Action
Thousands of investors filed a class-action lawsuit against Force Protection alleging the company and its top officers made false and misleading statements regarding financial results, failed to maintain effective internal controls over financial reporting, and failed to comply with government contracting standards. They claimed the company failed to warn shareholders about delays in delivering vehicles and about a flawed accounting system that affected Force Protection’s ability to win government contracts. Investors filed the lawsuit in March 2008 after the stock price fell from a high of more than $30 a share to less than $3. Force Protection agreed to a settlement in which it admitted no wrongdoing and paid class members a total of $24 million. Force Protection was also ordered to pay approximately $6.4 million in attorneys’ fees and expenses and $15,000 in damages to each of the lead plaintiffs.
- Misconduct Type
- Enforcement Agency
- Contracting Party
- Court Type
- Date of Settlement Announcement
|Force Protection, Inc.||$30,486,377|