Company Accused of Price-Gouging N95 Masks Hit With Injunction
A preliminary injunction was entered against Performance Supply LLC, which has been alleged to have used 3M's trademarks to market medical-grade face masks at inflated prices. The defendant didn't appear at the proceedings.
May 04, 2020 at 02:39 PM
3 minute read
The original version of this story was published on Law.com
A Manhattan federal judge on Monday barred a New Jersey-based company from touting any kind of association with 3M, after the firm failed to respond to a price-gouging lawsuit over its alleged attempt to sell N95 respirators at as much as six times the recommended list price amid the COVID-19 pandemic.
U.S. District Judge Loretta A. Preska of the Southern District of New York entered a preliminary injunction against Performance Supply LLC, which was accused in an April 10 complaint of using 3M's trademarks to market the medical-grade face masks at inflated prices.
Performance Supply had not acknowledged the lawsuit prior to a show-cause hearing Monday morning, and no attorneys for the company entered an appearance during a the proceeding, which was held via teleconference.
Carmine Zarlenga, a Mayer Brown partner who represents 3M, told Preska during the four-minute hearing that his team had served all the necessary papers in the case, but had not received any response from Performance Supply, which was identified in court filings as a Delaware LLC based in Manalapan, New Jersey.
"We have gone to great lengths to do that, and we have not received any communications from the defendant," Zarlenga said.
Performance Supply could not be reached for comment on Monday. No website, phone number or email address for the company appeared to be listed online.
Preska's order prevented the company and its agents from using 3M's trademarks or otherwise representing itself as a distributor or vendor for its products.
According to the lawsuit, Performance Supply emailed a $45 million quote to the New York City's Office of Citywide Procurement at the end of March, using 3M's logo and leading officials to believe it was an authorized distributor of the N95 masks,which are considered essential for health care workers who treat COVID-19 patients.
The suggested list price of the two types of 3M N95s involved in this case is $1.02 to $1.31, but Performance Supply offered to sell 7 million masks to the city at a rate of more than $6 per mask, according to court papers.
John Mancini of Mayer Brown wrote in the complaint that as demand for the masks grew amid the pandemic, 3M increased production of N95s, but had not increased prices. The company has created a hotline to combat price gouging and published the list price of its masks so that potential buyers can easily check it, according to court papers.
"The mere association of 3M's valuable brand with such shameless price-gouging harms the brand, not to mention its more serious threat to public health agencies that are under strain in the midst of a worldwide pandemic," Mancini wrote in the 26-page filing.
According to the complaint, any damages 3M secures through the lawsuit will be donated to a charitable organization of its choosing.
The case is captioned 3M v. Performance Supply.
|This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllLatham, Finnegan Win $115M Muscular Dystrophy Drug Patent Verdict for Counterclaimant
2 minute readDelaware Supreme Court Adopts Broad Interpretation of Case Law on Anticompetition Provisions
3 minute read3rd Circuit Nominee Mangi Sees 'No Pathway to Confirmation,' Derides 'Organized Smear Campaign'
4 minute readLaw Firms Mentioned
Trending Stories
- 1Decision of the Day: Judge Reduces $287M Jury Verdict Against Harley-Davidson in Wrongful Death Suit
- 2Kirkland to Covington: 2024's International Chart Toppers and Award Winners
- 3Decision of the Day: Judge Denies Summary Judgment Motions in Suit by Runner Injured in Brooklyn Bridge Park
- 4KISS, Profit Motive and Foreign Currency Contracts
- 512 Days of … Web Analytics
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250