Johnson & Perkinson Announces Commencement of Class Action Litigation Naming Force Protection, Inc.
Market Wire, April, 2008
Johnson & Perkinson hereby announces the commencement of a class action lawsuit naming Force Protection, Inc. ("Force Protection" or the "Company") (NASDAQ: FRPT) and certain officers of the Company. The action was filed in the United States District Court for the District of South Carolina. Individuals, families, trusts or other entities that purchased Force Protection common stock between August 14, 2006 and February 29, 2008, inclusive, have the opportunity to participate as Lead Plaintiffs in the currently pending class action litigation against the Company. To do so, you must apply to serve in that capacity by May 9, 2008.
Johnson & Perkinson, a law firm based in South Burlington, Vermont, has extensive experience prosecuting investor class actions and actions involving financial fraud. Attorneys Johnson and Perkinson are both former employees of the Securities and Exchange Commission. Dedicated to maximizing shareholder return, members of Johnson & Perkinson have prosecuted complex class actions alleging securities or consumer fraud/deception on behalf of investors/consumers against numerous public companies since 1985, resulting in the recovery of many hundreds of millions of dollars, and have been singled out for excellence by various courts. The firm is litigating, or has recently resolved litigation, as Lead or Co-Lead Counsel in securities class actions against Xerox, Priceline, Wireless Facilities, i2 and Xchange, and serves on the Executive Committee in the Global Crossing case.
The complaint alleges that prior to and during the Class Period, defendants continually boasted that Force Protection's dominance in the Mine Resistant Ambush Protected ("MRAP") vehicles market was due to its superior product design and rapid delivery rates. In June 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. The report noted that there were other U.S. companies that could have competed with Force Protections on both product capability and faster delivery schedules. The complaint further alleges the following true 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; (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.
If you wish to discuss this action or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Johnson & Perkinson attorneys James F. Conway, III or Eben F. Duval toll free at 1-888-459-7855; via email at email@jpclasslaw.com ; through our website at www.jpclasslaw.com ; or by mail at Johnson & Perkinson, 1690 Williston Road, P.O. Box 2305, South Burlington, Vermont 05403. Attorneys at Johnson & Perkinson can help you decide if seeking appointment as a Lead Plaintiff is right for you. Your ability to share in any recovery is not affected by your decision to not seek appointment as a Lead Plaintiff.
Contact: James F. Conway, III or Eben F. Duval 802-862-0030 Email Contact
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