| Company: | Force Protection, Inc. |
| Ticker Symbol: | NASD: FRPT |
| Class Period: | August 14, 2006 to February 29, 2008 |
| Date Filed: | March-10-08 |
| Lead Plaintiff Deadline: | May-09-08 |
| Court: | District, SC |
| Allegations: |
A class action has been commenced in the United States District Court for the District of South Carolina on behalf of purchasers of Force Protection, Inc. ("Force Protection") (NASDAQ:FRPT) common stock during the period between August 14, 2006 and February 29, 2008 (the "Class Period").
The complaint charges Force Protection and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Force Protection and its subsidiaries engage in the manufacture of ballistic and blast protected vehicles.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business, financial results and prospects. Specifically, defendants continually boasted Force Protection's dominance in the Mine Resistant Ambush Protected ("MRAP") market was due to its superior product design and rapid delivery rates. However, in a report dated June 27, 2007, the Inspector General of the Department of Defense questioned both of these claims and criticized the awarding of contracts to Force Protection on a sole source basis and without competitive bidding. Then, on February 29, 2008, after the market closed, Force Protection announced it would have to delay the release of its 2007 Form 10-K and restate its Form 10-Q for the period ended September 30, 2007. On this news, Force Protection's stock collapsed to close at $3.58 per share on March 3, 2008, a one-day decline of 13% and an 88% decline from the Class Period high of $30.27 per share, prior to when Force Protection's problems began to be revealed.
According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) as a result of the Company's ongoing problems in meeting contractual delivery deadlines, the Company would have trouble competing in the MRAP market; (b) in audit reports, the Defense Contract Audit Agency had been critical of the Company's finances and financial accounting system, which threatened the Company's eligibility to compete for government contracts; (c) the Company's accounting department suffered from material weaknesses and deficiencies and lacked the necessary staff and resources to perform its required functions; (d) contrary to the representations contained in the Company's SEC filings, the Company's internal controls were inadequate and easily manipulated; (e) the Company lacked effective internal controls in its financial reporting process, required to enable it to properly analyze and/or estimate Force Protection's future financial and operational performance; and (f) defendants had caused the Company to falsely report at least its third quarter 2007 financial results.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The complaint charges Force Protection and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Force Protection and its subsidiaries engage in the manufacture of ballistic and blast protected vehicles.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business, financial results and prospects. Specifically, defendants continually boasted Force Protection's dominance in the Mine Resistant Ambush Protected ("MRAP") market was due to its superior product design and rapid delivery rates. However, in a report dated June 27, 2007, the Inspector General of the Department of Defense questioned both of these claims and criticized the awarding of contracts to Force Protection on a sole source basis and without competitive bidding. Then, on February 29, 2008, after the market closed, Force Protection announced it would have to delay the release of its 2007 Form 10-K and restate its Form 10-Q for the period ended September 30, 2007. On this news, Force Protection's stock collapsed to close at $3.58 per share on March 3, 2008, a one-day decline of 13% and an 88% decline from the Class Period high of $30.27 per share, prior to when Force Protection's problems began to be revealed.
According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) as a result of the Company's ongoing problems in meeting contractual delivery deadlines, the Company would have trouble competing in the MRAP market; (b) in audit reports, the Defense Contract Audit Agency had been critical of the Company's finances and financial accounting system, which threatened the Company's eligibility to compete for government contracts; (c) the Company's accounting department suffered from material weaknesses and deficiencies and lacked the necessary staff and resources to perform its required functions; (d) contrary to the representations contained in the Company's SEC filings, the Company's internal controls were inadequate and easily manipulated; (e) the Company lacked effective internal controls in its financial reporting process, required to enable it to properly analyze and/or estimate Force Protection's future financial and operational performance; and (f) defendants had caused the Company to falsely report at least its third quarter 2007 financial results.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
