On Friday a case was removed from the San Diego County Superior Court to the Southern District of California. The case was filed by Innovative Medical Supplies LLC (IMS) against Advanced Tear Diagnostics, LLC (ATD) and Marcus W. Smith. The case alleges fraud, conversion, and unjust enrichment regarding a contract between the parties for the purchase of medical devices.
The plaintiff, according to the complaint, was the sole authorized distributor of the defendant’s TearScan 300 device which was an ophthalmic device designed to test and diagnose dry-eye conditions. Due to logistics and supply chain related issues experienced by the defendant, the plaintiff argues that it advanced nearly $300,000 and hundreds of labor hours to ensure the success of the partnership. This advance was to be either repaid or compensated for in the form of certificates of security in ATD. Instead, the plaintiffs used the funds for personal expenditures and instead of completing the contracts with IMS, proceeded to sell products to IMS’ competitors.
The plaintiff is suing for fraud, conspiracy to defraud, conversion, and unjust enrichment. They are represented by Omnum Law. The defendants are represented by the Law Offices of J. Carlos Fox.
