Government officials alleged Armor Holdings manufactured and sold Zylon bulletproof vests despite having information that the Zylon materials degraded quickly over time and were unsuitable, the Justice Department said in a release.

The vests were purchased by federal, state and local law enforcement agencies that were partially reimbursed though the Justice Department's Bulletproof Vest Partnership program.

"The Justice Department will not tolerate its first responders wearing defective bulletproof vests," said Gregory Katsas, assistant attorney general for the Civil Division. "This settlement will help ensure that first responders receive the highest quality ballistic protection."

This settlement is part of a larger investigation of the body armor industry's use of Zylon in body armor. As part of the agreement, Armor Holdings agreed to cooperate in the investigation.

The United States also has settled with three other participants in the Zylon body armor industry for more than $16 million, the Justice Department said.