U.S. Settles Lawsuit with Itochu Corp. and Itochu International Regarding Defective Bullet-Proof Vests
WASHINGTON - The United States has reached a $6.75 million settlement with Itochu Corp. of Japan and its American subsidiary, Itochu International Inc., to resolve claims under the False Claims Act in connection with the companies’ importation and sale of defective Zylon fiber used as the key ballistic material in bullet-proof vests purchased by the United States for federal, state, local and tribal law enforcement agencies, the Justice Department announced today. The Itochu companies imported the Zylon fiber on behalf of the Zylon manufacturer, Toyobo Co. Ltd. of Japan. The United States alleged that the Itochu companies were aware that the fiber degraded quickly over time and that the companies knew that this degradation rendered bullet-proof vests containing woven Zylon unfit for use. The government further alleged that, despite this knowledge, Itochu personnel actively participated in the marketing of the Zylon fiber and downplayed the extent of the degradation problem.