Class action against Protective Products of America
Notice of certification and authorization and leave to proceed with statutory secondary market misrepresentation claims granted by Ontario Court
On April 24, 2013, the Ontario Superior Court of Justice certified the action Michael Frank et al. v. R. Patrick Caldwell et al., Court File No. CV-10-415821-CP00 (the “Class Action”) as a class proceeding and appointed Michael Frank, Sheldon Zamick, and Norman Spurgeon as representative plaintiffs.
The Class Action alleges that PPA’s former directors and officers knowingly permitted negative misrepresentations and non-disclosure of positive material information about the company’s business, operations, and capital, in order to depress its share price. PPA never disclosed that over a month before its voluntary bankruptcy filing in Florida, the U.S. Army had awarded the company a significant Indefinite Delivery Indefinite Quantity contract potentially worth up to $2.7 billion. Throughout 2008 and 2009, PPA had touted this U.S. Army contract as a highly valuable opportunity for the company.
The Class Action has been certified on behalf of the following class: all persons, wherever they may reside or be domiciled, who sold shares of Protective Products of America, Inc. (“PPA”) during the period from and includingOctober 8, 2009 to and including January 13, 2010 (the “Class Period” or who held shares of PPA at the end of the Class Period, other than certain excluded persons associated with the defendants described in the certification notice.
If you want to opt out of the class actions, you must do so by no later than September 1, 2013 in accordance with the instructions set out in the leave and certification notice above.