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<title>Forward Industries Form 8-K </title>


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<p align=center style='margin:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p>
<p align=center style='text-align:center; margin-left:0pt; margin-right:0pt'><b>UNITED STATES<br>
SECURITIES AND EXCHANGE
COMMISSION<br>
Washington, D.C. 20549</b></p>



<p align=center style='text-align:center; margin-left:0pt; margin-right:0pt'><b>
<font size="4">FORM 8-K </font> </b></p>



<p align=center style='text-align:center; margin-left:0pt; margin-right:0pt'><b>CURRENT REPORT </b></p>



<p align=center style='text-align:center; margin-left:0pt; margin-right:0pt'><b>Pursuant to Section 13 OR 15(d) of
<br>
The Securities Exchange Act of 1934 </b></p>

<p align=center style='text-align:center; margin-left:0pt; margin-right:0pt'>Date of Report (Date of
earliest event reported) <br>
<b>October 3, 2006 </b> </p>



<p align=center style='text-align:center; margin-left:0pt; margin-right:0pt'><b>
<font size="6">Forward Industries, Inc.<br>
</font><font size="2">(Exact name of registrant
as specified in its charter) </font></b></p>





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  <p class=MsoNormal align=center style='text-align:center'><b>New York</b></p>
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  padding:0pt 0pt 0pt 0pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>000-6669</b></p>
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  <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>

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  <p class=MsoNormal align=center style='text-align:center'><b>13-1950672</b></p>
  </td>
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  <p align=center style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>(State or Other
  Jurisdiction</b></p>
  <p align=center style='margin-top:0pt;margin-right:0pt;margin-bottom:.75pt;
  margin-left:0pt;text-align:center'><b>Of Incorporation)</b></p>
  </td>
  <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>

  </td>
  <td valign=top style='padding:0pt 0pt 0pt 0pt'>
  <p align=center style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>(Commission</b></p>
  <p align=center style='margin-top:0pt;margin-right:0pt;margin-bottom:.75pt;
  margin-left:0pt;text-align:center'><b>File Number)</b></p>
  </td>
  <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>

  </td>
  <td valign=top style='padding:0pt 0pt 0pt 0pt'>
  <p align=center style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>(IRS Employer</b></p>
  <p align=center style='margin-top:0pt;margin-right:0pt;margin-bottom:.75pt;
  margin-left:0pt;text-align:center'><b>Identification No.)</b></p>
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  &nbsp;

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  <td width="47%" style='width:47.0%;padding:0pt 0pt 0pt 0pt'>

  </td>
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  padding:0pt 0pt 0pt 0pt'>
  <p align=center style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>1801 Green Road, Suite
  E</b></p>
  <p align=center style='margin-top:0pt;margin-right:0pt;margin-bottom:.75pt;
  margin-left:0pt;text-align:center'><b>Pompano Beach, FL </b></p>
  </td>
  <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>

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  <p class=MsoNormal align=center style='text-align:center'><b>33064</b></p>
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  <p class=MsoNormal align=center style='text-align:center'><b>(Address of principal executive offices)</b></p>
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  <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>

  </td>
  <td valign=top style='padding:0pt 0pt 0pt 0pt'>
  <p class=MsoNormal align=center style='text-align:center'><b>(Zip&nbsp;Code)</b></p>
  </td>
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  <td valign=top style='padding:0pt 0pt 0pt 0pt'>
  &nbsp;
  </td>
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  &nbsp;</td>
  <td valign=top style='padding:0pt 0pt 0pt 0pt'>
  &nbsp;</td>
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<p align=center style='margin:0pt;margin-bottom:.0001pt;text-align:center'><br>
Registrant's telephone
number, including area code </p>

<p align=center style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>(954) 419-9544 </b></p>





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  &nbsp;

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  &nbsp;

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  <div style="border-bottom: 1px solid #000000">
&nbsp;</div>

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  <td nowrap valign=top style='border-style:none; border-width:medium; padding:0pt; '>
  <p class=MsoNormal align=center style='text-align:center'><b>(Former name or former address, if changed since last
  report)</b></p>
	<p class=MsoNormal align=center style='text-align:center'>&nbsp;</p>
  </td>
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<p style='margin:0pt;margin-bottom:.0001pt'>Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions: </p>
<p style='margin:0pt;margin-bottom:.0001pt'>&nbsp;</p>



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  <p class=MsoNormal>Written communications
  pursuant to Rule 425 under the Securities Act (17 CFR 230.425) <br>
&nbsp;</p>
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  &nbsp;</td>
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  <p class=MsoNormal>Soliciting material
  pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) <br>
&nbsp;</p>
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  <p class=MsoNormal>Pre-commencement
  communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
  240.14d-2(b)) <br>
&nbsp;</p>
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  <p class=MsoNormal>Pre-commencement
  communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
  240.13e-4(c)) <br>
&nbsp;</p>
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<p align=center style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>INFORMATION TO BE
INCLUDED IN THIS REPORT</b></p>

<p style='margin:0pt;margin-bottom:.0001pt'><b>&nbsp;</b></p>

<p style='margin:0pt;margin-bottom:.0001pt'><b>Section 8 - OTHER EVENTS</b></p>

<p style='margin-left:0pt; margin-right:0pt'><b>Item 8.01 Other Events</b></p>



<p style='text-indent:24.5pt; margin-left:0pt; margin-right:0pt'>On October 3, 2006, the
Company was served with a summons and purported class action complaint in a
matter captioned &quot;Lynn Finkelstein &amp; Company, Inc., on behalf of certain of
its clients as attorney-in-fact and all other similarly situated, Plaintiff,
vs. Jerome E. Ball, Douglas W. Sabra, Michael Schiffman, and Forward
Industries, Inc., Defendants, brought in the United States District Court for
the Southern District of Florida.&nbsp; The complaint alleges that the Company during
a purported class period July 25, 2005 to February 2, 2006 made certain
misrepresentations of fact, or failed to disclose certain material facts, and
violated certain generally accepted accounting principles in the presentation
of its financial statements included&nbsp; in its periodic reports filed with the
Securities and Exchange Commission pursuant to the Securities Exchange Act of
1934.</p>



<p style='text-indent:24.5pt; margin-left:0pt; margin-right:0pt'>The Company, as well as
each of &nbsp;the individual defendants, believes that the complaint is wholly
without merit and intends to vigorously contest this lawsuit.&nbsp; The Company has
directors and officers liability insurance, including entity coverage. The
Company believes that in the course of defending the complaint it will incur
legal and other expenses which may exceed the retention amount in its directors
and officers liability insurance policy and that incurring expenses not covered
by this policy may adversely affect its reported results of operations in
future periods.&nbsp; While the Company believes that the complaint is without
merit, the outcome of this lawsuit cannot be predicted and the Company's
ultimate liability if this lawsuit is adversely determined cannot currently be
ascertained and could be material.</p>



<p style='text-indent:24.5pt; margin-left:0pt; margin-right:0pt'>Certain statements
above, other than statements of historical fact, are &quot;forward-looking
statements&quot; within the meaning of the Private Securities Litigation Reform Act
of 1995.&nbsp; Such statements are subject to certain risks and
uncertainties&nbsp;that could cause actual results to differ materially from
those reflected in any forward-looking statements.&nbsp; These forward-looking
statements represent the Company's judgment as of the date of the
release.&nbsp; The Company disclaims, however, any obligation to update these
forward-looking statements.</p>
<p style='margin:0pt;margin-bottom:.0001pt;text-indent:24.5pt'>&nbsp;</p>
<p style='margin:0pt;margin-bottom:.0001pt;text-indent:24.5pt'>&nbsp;</p>
<p style='margin:0pt;margin-bottom:.0001pt;text-indent:24.5pt'>&nbsp;</p>
<p style='margin:0pt;margin-bottom:.0001pt;text-indent:24.5pt'>&nbsp;</p>
<p style='margin:0pt;margin-bottom:.0001pt;text-indent:24.5pt'>&nbsp;</p>
<p style='margin:0pt;margin-bottom:.0001pt;text-indent:24.5pt'>&nbsp;</p>
<p style='margin:0pt;margin-bottom:.0001pt;text-indent:24.5pt'>&nbsp;</p>





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<p align=center style='margin:0pt;margin-bottom:.0001pt;text-align:center'>&nbsp;</p>
<p align=center style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>SIGNATURES </b></p>
<p align=center style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b>&nbsp;</b></p>



<p style='margin:0pt;margin-bottom:.0001pt;text-indent:24.5pt'>Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly
authorized. </p>





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<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'><b>Forward
Industries Inc.,</b></p>

<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'><b>&nbsp;</b></p>





<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'><b>By</b>:</p>





<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'>/s/ Jerome E. Ball</p>

<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'>_______________________________________</p>



<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'><b>Name </b>Jerome
E. Ball</p>



<p class=MsoNormal style='margin-left:72.0pt;text-indent:-72.0pt'><b>Title:</b> Chairman
and Chief Executive Officer</p>



<p class=MsoNormal><b>Dated:</b> &nbsp;October 13, 2006</p>
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{"company-data": {"conformed-name": "FORWARD INDUSTRIES INC", "cik": "0000038264", "assigned-sic": "3089", "irs-number": "131950672", "state-of-incorporation": "NY", "fiscal-year-end": "0930"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-06669", "film-number": "061145086"}, "business-address": {"street1": "1801 GREEN ROAD", "street2": "SUITE E", "city": "POMPANO BEACH", "state": "FL", "zip": "33064", "phone": "9544199544"}, "mail-address": {"street1": "1801 GREEN RD", "street2": "SUITE E", "city": "POMPANO BEACH", "state": "FL", "zip": "33064"}, "former-company": {"former-conformed-name": "PROGRESS HEAT SEALING CO INC", "date-changed": "19721111"}}
Forward Industries Form 8-K
UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of
earliest event reported)
October 3, 2006
Forward Industries, Inc.
(Exact name of registrant
as specified in its charter)
New York
000-6669
13-1950672
(State or Other
  Jurisdiction
Of Incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
1801 Green Road, Suite
  E
Pompano Beach, FL
33064
(Address of principal executive offices)
(Zip Code)
Registrant's telephone
number, including area code
(954) 419-9544
(Former name or former address, if changed since last
  report)
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions:
o
Written communications
  pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material
  pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement
  communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
  240.14d-2(b))
o
Pre-commencement
  communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
  240.13e-4(c))
INFORMATION TO BE
INCLUDED IN THIS REPORT
Section 8 - OTHER EVENTS
Item 8.01 Other Events
On October 3, 2006, the
Company was served with a summons and purported class action complaint in a
matter captioned "Lynn Finkelstein & Company, Inc., on behalf of certain of
its clients as attorney-in-fact and all other similarly situated, Plaintiff,
vs. Jerome E. Ball, Douglas W. Sabra, Michael Schiffman, and Forward
Industries, Inc., Defendants, brought in the United States District Court for
the Southern District of Florida.  The complaint alleges that the Company during
a purported class period July 25, 2005 to February 2, 2006 made certain
misrepresentations of fact, or failed to disclose certain material facts, and
violated certain generally accepted accounting principles in the presentation
of its financial statements included  in its periodic reports filed with the
Securities and Exchange Commission pursuant to the Securities Exchange Act of
1934.
The Company, as well as
each of  the individual defendants, believes that the complaint is wholly
without merit and intends to vigorously contest this lawsuit.  The Company has
directors and officers liability insurance, including entity coverage. The
Company believes that in the course of defending the complaint it will incur
legal and other expenses which may exceed the retention amount in its directors
and officers liability insurance policy and that incurring expenses not covered
by this policy may adversely affect its reported results of operations in
future periods.  While the Company believes that the complaint is without
merit, the outcome of this lawsuit cannot be predicted and the Company's
ultimate liability if this lawsuit is adversely determined cannot currently be
ascertained and could be material.
Certain statements
above, other than statements of historical fact, are "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995.  Such statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from
those reflected in any forward-looking statements.  These forward-looking
statements represent the Company's judgment as of the date of the
release.  The Company disclaims, however, any obligation to update these
forward-looking statements.
-1-
SIGNATURES
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.
Forward
Industries Inc.,
By
:
/s/ Jerome E. Ball
_______________________________________
Name
Jerome
E. Ball
Title:
Chairman
and Chief Executive Officer
Dated:
October 13, 2006
-2-