SAN DIEGO — Two international investment companies are suing a San Diego biotechnology research and development company, alleging fraud and breach of contract.
YH North America Capital Limited and Yonghua International I LP filed a complaint Nov. 3 in U.S. District Court for the Southern District of California against Mesa Biotech Inc. and Does 1 through 10, alleging the defendant hid a third party investor in order to persuade the plaintiffs to invest in the company.
According to the complaint, on Dec. 29, 2016, the plaintiffs signed and executed an agreement to purchase $5 million to invest in Meas Biotech with the knowledge that all related material information had been received and that they are the sole investor of the company.
Upon information and belief, the plaintiffs allege Mesa Biotech did not provide any documents relating to ongoing negations with a third party and that another investor had signed an agreement financing the business.
The plaintiffs allege Mesa Biotech failed to provide any documents relating to ongoing negotiations and failed to inform the investor of the existence of the concurrent negotiations with third party Chinese investors in order to induce plaintiff into the agreement.
The plaintiffs seek trial by jury, compensatory, punitive, exemplary damages, costs of suit, attorney fees, pre and post-judgment interest and all other relief the court deems just and proper. They are represented by attorney Kevin C. Menes of LTL Attorneys LLP in San Francisco.
U.S. District Court for the Southern District of California case number 3:17-cv-02241-L-MDD