On Friday, Focus Industries Med, LLC filed a complaint in the Central District of California against SNS Global Pharma Corporation and ASAP International SDN BHD alleging breach of contract and fraud.
According to the complaint, Focus is a reseller and distributor of personal protective equipment (PPE) to customers including hospitals and other healthcare businesses. Additionally, the complaint states that SNS purchases PPE from manufacturers and then sells the equipment to resellers and distributors such as Focus. Further, the complaint states that ASAP is a Malaysian company that manufactures and ships PPE including surgical latex-powdered gloves and surgical latex-powder-free gloves to customers around the world.
The complaint alleges that between January and March 2021, Focus purchased over $2,000,000 of ASAP nitrile gloves from SNS. Focus states that shortly after selling ASAP’s products to customers in August 2021, it began receiving several complaint that the gloves were soiled with dirt, grease and rust, contained holes, were inconsistent in thickness and easily torn, raising concerns that the use of the gloves could result in infection to patients, healthcare professionals and emergency response personnel.
Subsequently, Focus conducted an investigation confirming the poor quality mentioned in the complaints.
Focus alleges that the gloves it received from ASAP through SNS did not meet the quality warranted and advertised by the companies and that the gloves were defective. Additionally, Focus states that it has over $1 million in ASAP gloves sitting in a warehouse that it cannot sell in good conscience and as a result of the gloves poor quality, it has lost its two largest clients.
Therefore, the complaint states that on November 30, 2021, Focus made a formal demand to SNS for reimbursement of the cost of ASAP goods, storage expenses, transportation costs and lost business. The complaint states that Focus has not received a response from SNS as of the date of the lawsuit.
Accordingly, Focus filed the present lawsuit against SNS and ASAP alleging breach of contract, breach of implied warranty, fraud and deceit, negligent interference with prospective economic advantage and negligence. Focus seeks declaratory relief, rescission, monetary damages, pre and post-judgment interest and costs. Focus is represented by Strongin Burger LLP.