BAE subsidiary pays settlement to US government

Posted on 8 Oct 2008 by The Manufacturer

Armor Holdings – part of BAE Systems – has agreed to pay out $30 million (£17 million) to the US government following allegations it made and sold defective bullet proof vests.

The US government claims that the material Zylon degrades over time and that Armor Holdings knowingly continued to use the material in the manufacture of body armour, despite being aware of its unsuitability.

The company, which has been co-operating with the government as part of a wider probe, denies that is was aware of the fault prior to the production and sale of the vests.

“The Justice department will not tolerate its first responders wearing defective bullet proof vests,” said Gregory Katsas, assistant attorney general for the Civil Division. “This settlement will help ensure that first responders receive the highest quality ballistic protection.”