ALEXANDRIA, Va. (AP) - A medical supply company created by two political consultants during the coronavirus pandemic have filed a lawsuit alleging that officials at a Virginia bank caused the firm to lose a $600 million equipment order and ruined its reputation.
The Washington Post reports that in the lawsuit filed in federal court in Alexandria Friday, Blue Flame Medical LLC alleges that officers of Chain Bridge Bank improperly told California officials that the company might be “fraudulent,” prompting the state to suspend its contract with Blue Flame and demand return of a $450 million down payment.
State and local officials across the country ran into a confusing international market as they sought to secure personal protective equipment this spring.
The lawsuit alleges that the Republican consultants who founded Blue Flame - John Thomas and Michael Gula - suffered damage to their personal reputations as a result of the bank’s actions.
Chain Bridge Bank rejected the claims. The bank “acted properly and fulfilled its legal and regulatory responsibilities,” spokesman Rich Danker said.
Ethan Bearman, Blue Flame’s general counsel, said the lawsuit was the beginning of a process “of setting the record straight” about Blue Flame. He said the company “has persevered and completed deliveries to satisfied customers.”
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