A settlement has been reached to resolve False Claims Act allegations against Lincoln Fabrics Ltd, and its American subsidiary. They are accused of knowingly selling the government defective products.
In October 2009, the United States filed suit against Lincoln for violations of the False Claims Act and related claims. The $4 million settlement resolves this lawsuit.
The United States allegations are in relation to Lincoln Fabrics Ltd's role in the weaving of Zylon fabric used in the manufacture and sale of defective Zylon bullet-proof vests.
Using Zylon fiber manufactured by Toyobo Corp., Lincoln wove ballistic fabric for the body armor industry. Lincoln’s woven Zylon fabric was used in the manufacture of Zylon bullet-proof vests sold by several companies, including Second Chance Body Armor Inc., First Choice Armor Inc. and Point Blank Body Armor Inc. These vests were purchased by the United States, and by various state, local, and/or tribal law enforcement agencies, who were partially reimbursed by the United States.
The United States alleged that the Zylon in these vests lost its ballistic capability quickly, especially when exposed to heat and humidity. The United States further alleged that Lincoln was aware of the defective nature of the Zylon by at least December 2001, but continued to sell Zylon for use in ballistic armor until August 2005, when the National Institute of Justice issued a report that Zylon degraded quickly in ballistic applications. At that time, all American body armor manufacturers stopped using Zylon in body armor.
