A settlement has been reached to resolve False Claims Act allegations against NI Teijin Shoji Co Ltd, aka NI Teisho of Japan, and an American subsidiary, NI Teijin Shoji (USA) Inc. They are accused of importing and selling defective Zylon fiber which was used as the key ballistic material in bulletproof vests.
This settlement is part of a larger investigation of the body armor industry’s use of Zylon in body armor. The United States previously has settled with eight other participants in the Zylon body armor industry for more than $59 million.
The Teijin companies imported the fiber on behalf of the Zylon manufacturer, Toyobo Co. Ltd. of Japan. The United States alleged that the Teijin companies were aware that the fiber degraded quickly over time and that this degradation rendered bulletproof vests containing woven Zylon unfit for use. The government further alleged that, despite this knowledge, the Teijin companies did not inform the United States of any degradation concerns or stop selling Zylon fiber for use in ballistic applications. Rather, Teijin personnel actively participated in the marketing of the Zylon fiber and downplayed the extent of the degradation problem. Furthermore, for a period of time in 2002, Teijin purchased Zylon fabric back from the Canadian weaver to whom it had sold the fiber for weaving, and sold it directly to American body armor manufacturers, after the weaver itself refused to sell the Zylon fabric due to its fears of potential liability.
