On February 12, 2010, Lincoln Fabrics Ltd., a Canadian weaver of ballistic fabrics, and its American subsidiary, agreed to pay the United States $4 million to settle a lawsuit against Lincoln for violations of the False Claims Act in connection with their role in the weaving of Zylon fabric used in the manufacture and sale of defective Zylon bulletproof vests.
Lincoln wove ballistic Zylon fabric for the body armor industry, and it was used in the manufacture of Zylon bulletproof vests sold by several GSA contractors 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, which were partially reimbursed by the United States.
It was alleged that the Zylon in these vests lost its ballistic capability quickly, especially when exposed to heat and humidity. It was also alleged that Lincoln was aware of the defective nature of the Zylon by December 2001, but it 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.
In October 2009, the United States filed suit against Lincoln for violations of the False Claims Act and related claims.
This settlement was a result of an ongoing investigation by the General Services Administration Office of the Inspector General, the Justice Department’s Civil Division, the U.S. Attorney’s Office for the District of Columbia, the Department of Homeland Security Office of Inspector General, the Treasury Inspector General for Tax Administration, the Defense Criminal Investigative Service, the U.S. Army Criminal Investigative Command, the Air Force Office of Special Investigations, the Department of Energy Office of the Inspector General, the U.S. Agency for International Development Office of the Inspector General and the Defense Contracting Audit Agency.
