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Forming Limit Diagrams (FLD) have been widely and successfully used in sheet metal stamping as a failure criterion to detect localized necking, which is the most common failure mechanism for conventional steels during forming. However, recent experience from stamping Dual-Phase steels found that, under certain circumstances such as stretching-bend over a small die radius, the sheet metal fails earlier than that predicted by the FLD based on the initiation of a localized neck. It appears that a different failure mechanism and mode are in effect, commonly referred to as “shear fracture” in the sheet metal stamping community. In this paper, experimental and numerical analysis is used to investigate the shear fracture mechanism. Numerical models are established for a stretch-bend test on DP780 steel with a wide range of bend radii for various failure modes. The occurrences of shear fracture are identified by correlating numerical simulation results with test data.