Hexcel Corp. agreed to a $15 million settlement with the U.S. Department of Justice, resolving allegations it was partially responsible for defective bulletproof vests.
The department had accused Hexcel of using defective fibers from a Japanese company in fabric it sold for use in the vests. Prosecutors claimed Hexcel knew the fibers could degrade when exposed to heat, light or humidity.
In a statement to the Associated Press, the Stamford company denied liability and indicated it settled with the department to avoid legal costs. The justice department indicated the company would cooperate as the investigation of other companies proceeds.
In the third quarter, Hexcel had a $19 million profit on sales of $281 million, driven by gains in its aerospace materials division despite continued delays in Airbus”™ A380 passenger jet under development.
Earlier in October, Hexcel revealed it would spend $180 million to expand carbon fiber plants in Alabama and Utah and another locale to meet expected demand.
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