The plaintiffs sued for breach of an oral profit-sharing agreement related to a federal government contract to supply surgical gowns during the COVID-19 pandemic.
The court found that the parties had formed a binding oral contract to collaborate and share net profits on an 80.6/19.4 split, despite the lack of a signed written agreement and the defendant's claim that board approval was required.
The court awarded the plaintiff $10,229,782 in damages, representing 19.4% of the net profits from the gowns contract.
