U.S. Awarded $30M in Bullet-Proof Vest Suit

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WASHINGTON – Armor Holdings Products LLC has agreed to pay the United States $30 million to resolve allegations that it violated the False Claims Act by knowingly manufacturing and selling defective Zylon bullet-proof vests, according to the Justice Department.

The United States alleged that Armor Holdings manufactured and sold Zylon bullet-proof vests despite possessing information showing that the Zylon materials degraded quickly over time and were not suitable for ballistic use. The Armor Holdings vests were purchased by the federal government, and by various state, local and tribal law enforcement agencies that were partially reimbursed by the United States under the Justice Department’s Bulletproof Vest Partnership program.

Armor Holdings’ Zylon vests contained either woven Zylon or a Zylon laminate insert called Z Shield. The Zylon fiber used in both types of vests was manufactured by Toyobo Co. Ltd. In July 2007, the United States sued Toyobo for its manufacture and sale of Zylon to U.S.-based body armor manufacturers. The Z Shield insert containing Zylon was manufactured by Honeywell Corporation. In June 2008, the United States sued Honeywell for its manufacture and sale of Z Shield to Armor Holdings.

“The Justice Department will not tolerate its first responders wearing defective bullet-proof vests,” said Gregory G. Katsas, the Assistant Attorney General for the Civil Division. “This settlement will help ensure that first responders receive the highest quality ballistic protection.”

This settlement is part of a larger investigation of the body armor industry’s use of Zylon in body armor. As part of today’s agreement, Armor Holdings has pledged its cooperation in the government’s ongoing investigation. The United States previously settled with three other participants in the Zylon body armor industry for more than $16 million.

Scott O’Brien, president of Armor Holdings Products, stated, “We stand behind the quality guarantees for our body armor products, and have and will continue to take appropriate action when their quality does not meet our own very high standards. We take seriously the safety of the men and women who count on our products to save their lives, and always will do the right thing for our customers. None of our vests have ever failed to stop a bullet that it was designed to stop, and we are extremely proud of that record.”

“We are pleased to have reached a conclusion in this matter and resolved the government’s concerns without resort to expensive and distracting litigation,” added Ian Graham, Vice President and General Counsel for AHP. “Previously, AHP had conducted its own internal review of the Zylon issues, and we acted promptly and conscientiously to protect our customers long before DOJ launched its inquiry. While we vigorously deny the government’s allegations, we felt that it was important to put this Zylon matter behind us.”

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