DHB Industries Inc., a provider of protective body armor industry, announced that it has won a settlement agreement from its insurance agent. Under the terms of the settlement, the insurance agent will pay DHB $1 million cash.
The Company had previously filed separate lawsuits against both its insurance agent and insurance carrier for negligence and breach of fiduciary duties as a result of the damages incurred during Hurricane Irene in October 1999. DHB still has a substantial multi-million dollar claim pending against the insurance carrier.
Commenting on the settlement, David H. Brooks, DHB’s Chief Executive Officer and Chairman, stated, “We are pleased that an acceptable settlement could be reached with the insurance agent without the need for litigation. We still have a separate multi-million-dollar claim outstanding against the insurance carrier which we hope will result in a favorable conclusion.” Brooks continued, “As DHB did not reserve for this settlement, the Company will experience a one-time gain and earnings benefit in the second quarter.”
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