Anticipating that the original lawsuit could be dismissed on procedural grounds, FS Medical launched the new complaint to keep its claims alive.
“The defendants will vigorously oppose that attempt,” said Robert W. Fuller of Robinson Bradshaw & Hinson PA, counsel for the Bournes, vowing to hold FS Medical responsible for the alleged misstep.
A scheduled hearing before a North Carolina magistrate judge was abruptly canceled, pending resolution of the jurisdiction dispute.
A Pandemic-Era Partnership Turned Sour
According to the complaint, FS Medical was formed in 2020 to help source personal protective equipment during the peak of the COVID-19 pandemic. The company partnered with Tanner Pharma, a North Carolina-based medical distributor, and its U.K. subsidiary, Tanner Pharma UK.
Two key contracts were at the heart of their partnership:
- A non-circumvention agreement—Tanner Pharma pledged it would not bypass FS Medical when dealing with suppliers FS Medical had secured.
- A revenue-sharing agreement—FS Medical would source products, and Tanner Pharma would pay FS Medical half of all profits earned from sales.
But instead of honoring those agreements, FS Medical claims, Tanner Pharma orchestrated a secretive, multimillion-dollar scheme.
Allegations of Deception and a Stolen Deal
FS Medical says it introduced Tanner Pharma to Zhejiang Orient Gene Biotech Co. Ltd., a Chinese manufacturer of antigen test kits. The plan was simple: FS Medical would source the tests, Tanner Pharma would distribute them, and both would split the profits.