9.4 Million Verdict Issued in Breach of Contract Case Regarding Covid PPE Sales

Contracts – Breach of Contract

Krystal Ventures LLC v. SNS Global USA, LLC (Los Angeles Super Ct. No. 20STCV39888)

Los Angeles County Superior Court, Case No. 20STCV39888

At the outset of the COVID-19 pandemic, Krystal Ventures LLC entered into a partnership with SNS Global USA, LLC to buy and sell personal protective equipment (“PPE”). Krystal Ventures used its connections to secure PPE from manufacturers and funded the purchases. Defendant SNS Global and its principal, Richard Kofoed, sold the PPE and collected the proceeds. Instead of repaying Krystal Ventures and splitting profits as agreed, SNS Global allegedly retained the majority of the funds.

Krystal Ventures brought suit against SNS Global and Richard Kofoed, seeking $5,286,334 in damages, along with punitive damages. Plaintiff also pursued a fraudulent transfer claim against Mr. Kofoed and his wife, Stacy Kofoed. In response, SNS Global and Mr. Kofoed cross-claimed, alleging fraud and interference with business opportunities, and sought hundreds of millions of dollars in damages.

After a three-week trial, the jury found in favor of Krystal Ventures on all claims. The jury awarded $5,286,334 in damages, $2 million in punitive damages, and an additional $5,582,395 on the fraudulent transfer claim, for a total recovery of approximately $9.4 million before pre-judgment interest and costs.

The jury deliberated for just two and a half hours before returning a unanimous 12-0 verdict on all questions.

Counsel for Krystal Ventures was Michael L. Peters of Peters & Chang LLP (Los Angeles, CA). SNS Global USA, LLC and Richard Kofoed were represented by Karen D. Morales of Morales & Hunt LLP (Irvine, CA).