“But FSMS’s trust was misplaced,” the lawsuit states.
Instead, the complaint alleges, Tanner Pharma cut FS Medical out of the equation, secretly negotiating with Orient Gene behind closed doors. Tanner Pharma then:
- Issued purchase orders directly to Orient Gene, leaving FS Medical in the dark.
- Secured a confidential exclusive distribution agreement with Orient Gene, locking FS Medical out of future sales.
- Sold over $1.25 billion in test kits to the U.K. government without paying FS Medical a dime.
The lawsuit describes Tanner Pharma’s behavior as “immoral, unethical, unscrupulous, and deceptive.”
Tanner Pharma’s Leadership Under Scrutiny
The lawsuit paints Banks Bourne as the mastermind behind the scheme, asserting that he controlled Tanner Pharma both personally and through his childhood friend, Steve Scalia, who serves as the company’s president.
Scalia’s name does not appear as a defendant, but FS Medical’s lawsuit highlights his past legal troubles—noting that he previously pleaded guilty to securities fraud in California. Scalia and his brother were sentenced in 2011 for insider trading involving the biotech firm Sequenom Inc.
