Berger & Montague, P.C. Files Class Action Lawsuit Against Force Protection, Inc. And Extends The Class Period Through March 17, 2008.PHILADELPHIA -- The law firm of Berger & Montague, P.C. has filed a class action in the United States District Court for the District of South Carolina The United States District Court for the District of South Carolina is the Federal district court whose jurisdiction is the state of South Carolina. The United States Attorney's Office for the District of South Carolina on behalf of all purchasers of Force Protection, Inc. ("Force Protection") (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :FRPT FRPT Force Protection, Inc. (stock symbol) ) common stock between August 14, 2006 and March 17, 2008 (the "Class Period"). This represents an extension of the end of the Class Period asserted in the complaints currently on file from February 29, 2008 to March 17, 2008, the date Force Protection announced that it would delay for a second time filing its 2007 Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. due to the "scope of the work" involved in identifying accounting errors and restating its prior financial statements. As a result of this new announcement, Force Protection's stock price dropped an additional 23.5% to $1.37 per share. Force Protection is a manufacturer of ballistic- and blast-protected vehicles. Investors who purchased Force Protection common stock during the Class Period may move the Court to appoint them as lead plaintiff, no later than May 9, 2008. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . Investors in Force Protection who wish to discuss this action or the lead plaintiff selection process may contact Berger & Montague, P.C., toll free at 1-888-891-2289, or by e-mail at investorprotect@bm.net. A copy of the class action complaint can be viewed on Berger & Montague, P.C.'s website at www.bergermontague.com or may be requested from the Court. The case is Jeffrey Norman v. Force Protection, Inc., et al., No. 2:08-cv-01207-CWH. 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 that Force Protection's dominance in the Mine Resistant Ambush Protected ("MRAP MRAP Mine Resistant Ambush Protected (military vehicle) MRAP Mouvement contre le Racisme et Pour l'AmitiƩ entre les Peuples (French antiracism movement) MRAP Melanocortin-2 Receptor Accessory Protein ") market was due to its superior product design and rapid delivery rates. However, the Inspector General of the Department of Defense, in a report dated June 27, 2007, questioned both of these claims and also criticized the awarding of contracts to Force Protection on a sole source basis without competitive bidding Competitive bidding A securities offering process in which securities firms submit competing bids to the issuer for the securities the issuer wishes to sell. competitive bidding 1. . Then, on February 29, 2008, after the market closed, Force Protection announced it would delay the filing of its 2007 Form 10-K and restate its financial statements for the three- and nine-month 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 12.9%. On March 17, 2008, Force Protection announced that it would delay filing its 2007 Form 10-K a second time, causing an additional 23.5% stock price drop. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (1) Force Protection was having persistent problems meeting contractual delivery deadlines, which made it likely that the U.S. Government would purchase fewer MRAPs from Force Protection in the future; (2) the Company maintained an inadequate financial system of accounting, which also made it likely that the U.S. Government would do less business with Force Protection in the future; (3) the Company lacked adequate internal and financial controls contrary to the representations in its SEC filings; (4) the Company's financial statements were not prepared in accordance with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ; and (5) defendants had caused the Company to falsely report its financial results at least for the three- and nine-months ended September 30, 2007. For more information about this case, please contact: Sherrie R. Savett, Esq. Russell D. Paul, Esq. Eric Lechtzin, Esq. BERGER & MONTAGUE, P.C. 1622 Locust Street Philadelphia, PA 19103 Telephone: 215-875-3000 or 1-888-891-2289 Berger & Montague, founded in 1970, is a pioneer in class action litigation. The firm's approximately 65 attorneys concentrate their practice in complex litigation including securities fraud and corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. , antitrust, civil and human rights, consumer protection and environmental and mass torts A mass tort is a civil action involving numerous plaintiffs against one or a few corporate defendants in state or federal court. As the name implies a mass tort includes many plaintiffs and law firms have used the mass media to reach possible plaintiffs. , and have recovered several billion dollars for consumers and investors. |
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