DHB Industries, Inc. ("DHB" or the Company) designs, manufactures and markets protective body armor through its subsidiaries, Point Blank Body Armor, Inc. and Protective Apparel Corporation of America.

The original class charges DHB and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Specifically, the Complaint alleges that throughout the Class Period, Defendants issued numerous statements concerning the quality of the Company's bulletproof vests. Recently, DHB announced it would stop manufacturing and selling certain of its vests due to their being decertified by a government agency and took a write-off. Following this announcement, shares of DHB stock declined in value.

A similar, purported class action Complaint has also been filed in the U.S. District Court for the Southern District of New York.

According to a press release dated July 13, 2006, DHB announced today that it has signed a Memorandum of Understanding ("MOU") to settle the class action securities lawsuit against the Company and certain of its current and former directors and officers and others, as well as the shareholder derivative suit brought by shareholder Alvin Viray, both of which actions have been pending in the United States District Court for the Eastern District of New York. The class action will be settled for $34.9 million in cash, plus 3,184,713 shares of Company common stock. The derivative action will be settled in consideration of DHB adopting certain corporate governance provisions and paying $300,000, as attorneys' fees and expenses to lead Counsel in the derivative action. The settlement amounts are required to be paid into escrow within ten business days of the MOU. All costs of the settlement and all attorneys' fees and expenses of plaintiffs' class Counsel will be paid from the $34.9 million.

On March 12, 2007, a Stipulation and Agreement of Settlement was filed.

According to a press release dated July 9, 2007, DHB (OTC Pink Sheets: DHBT.PK) announced that the United States District Court, Eastern District of New York, had granted the Plaintiffs' motion for preliminary approval of the settlements entered into in connection with the securities class action against the Company and certain individual Defendants, as well as the related shareholder derivative action. Under the settlement documents, the Plaintiff class consists of all persons who purchased or otherwise acquired DHB shares during the period from November 18, 2003 through November 30, 2006. After notices of the settlement are mailed and published, the Court will hold a hearing to consider and determine whether to grant final approval of the settlement. The court has scheduled the hearing for October 5, 2007.

The settlement hearing was held on October 5, 2007, and no decision was filed regarding the pending settlement.

According to a press release dated September 30, 2008, an objector has appealed the final approval of settlement agreements entered into in a securities fraud class-action suit that was filed against Point Blank Solutions, Inc., and certain individual Defendants, as well as the related shareholder derivative action. Initially, several securities class-action and shareholder derivative lawsuits were filed against the Company and certain of the Company's directors and officers. Those lawsuits were recently settled. On June 25, 2008, the U.S. District Court for the Eastern District of New York approved the settlement. One of the objectors filed a notice of appeal on Aug. 1, 2008, according to the Company's Aug. 11, 2008 Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2008.