Force Protection Reaches $24M Preliminary Settlement in Shareholder Class Action

Ladson, SC: Force Protection Inc has announced that it has reached an agreement to settle the consolidated shareholder securities class action entitled In re Force Protection, Inc. Securities Litigation, Consolidated Civil Action No. 2:08-cv-845-CWH, pending in the U.S. District Court for the District of South Carolina against the Company and a number of the Company's former directors and/or officers. The settlement amount is $24 million, a majority of which will be covered by insurance. The settlement is subject to court approval and certain other conditions.

In addition, an agreement has been reached to settle a related shareholder derivative action entitled In re Force Protection, Inc. Derivative Litigation, Civil Action No. 2:08-1907-CWH, which is pending in the same federal court. This settlement provides that the Company will adopt certain corporate governance practices, receive a payment of $2.25 million from insurance, and pay plaintiffs' attorney's fees and expenses in an amount not to exceed $2.3 million. The settlement is subject to court approval and certain other conditions.

The Company is a party to related shareholder derivative actions pending in state courts in Nevada and South Carolina. The Company believes that if the federal derivative settlement is approved, that settlement will extinguish these related state court derivative actions.

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Published on Oct-1-10