Jury Awards $2.35 Million Verdict to Firm Clients in Sale of Counterfeit PPE Gloves During COVID

A federal jury reached a verdict following three years of litigation related to the purchase of nitrile gloves for healthcare workers during the pandemic, which were sold utilizing a counterfeit FDA approval certification. Physicians Wellness Group and Zareou Manufacturing entered into two contracts with Mooni USA, LLC and Jake Michel, of St. Petersburg, Florida to import the gloves to assist with the PPE shortage in the US market during the COVID pandemic.

Shortly after the gloves began to be marketed in the United States under the FDA 510k certificate represented by Mooni USA and Michel, a cease and desist letter was issued from the actual manufacturer/holder of the FDA 510k certificate number advising that the gloves were not manufactured by them, were counterfeit, and litigation would follow if the gloves were sold. The jury found that Mooni USA and Michel were liable for fraudulent inducement and negligent misrepresentation, awarding actual and punitive damages against both.

Cody Towns and Elizabeth Gebert represented Physicians Wellness Group and Zareou Manufacturing at trial. The case is Physicians Wellness Group, Inc. et al. v. Mooni USA, LLC, et al., Cause No. 4:22-cv-597 in the United States District Court for the Northern District of Texas.