Bronstein, Gewirtz & Grossman, LLC Reminds Force Protection, Inc. Shareholders of Lead Plaintiff Deadline -- FRPT
Market Wire, April, 2008
Bronstein, Gewirtz & Grossman, LLC reminds shareholders of Force Protection, Inc. ("Force Protection" or the "Company") (NASDAQ: FRPT) that they have until May 9, 2008 to ask the Court to appoint them as Lead Plaintiff for the class. Lead plaintiffs must meet certain legal requirements. The class action was filed on behalf of purchasers of the securities of the Company during the period from August 14, 2006 - February 29, 2008, inclusive (the "Class Period"). The complaint alleges violations of Section 10(b) and Section 20(a) of the Securities Exchange Act, and Rule 10b-5 promulgated there under.
The complaint further alleges the following facts, which were known by the defendants but concealed from the investing public during the class period: (1) as a result of the Company's ongoing problems in meeting contractual delivery deadlines, the Company would have trouble competing in the MRAP market; (2) 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; (3) the Company's accounting department suffered from material weaknesses and deficiencies and lacked the necessary staff and resources to perform its required functions; (4) contrary to the representations contained in the Company's SEC filings, the Company's internal controls were inadequate and easily manipulated, and, as a result, multiple areas of the Company's internal controls suffered serious deficiencies, including: (i) the financial closing process; (ii) accounting for inventory and the associated accounts payable expenses; (iii) stock-based compensation; and (iv) deferred tax balances; (5) 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; (6) defendants had caused the Company to falsely report at least its third quarter 2007 financial results.
As a result of the defendants' false statements, Force Protection's stock price traded at inflated levels during the Class Period and defendants were able to sell $87.4 million in Force Protection Stock. However, when the truth about the Company's operations and financial statements were revealed, the Company's shares were hammered by massive sales, sending them down 88% from their Class Period high.
If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact either Peretz Bronstein or Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email eitan@bgandg.com . Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
Bronstein Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate work, private securities offerings, and securities arbitration.
Contact: Peretz Bronstein Eitan Kimelman Email Contact Bronstein, Gewirtz & Grossman, LLC 212-697-6484
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