Equitas Bio/Pharma Solutions LLC, a Rockland consulting firm, is suing a former client for $551,000 for chronically missing payments.
Equitas Bio/Pharma of South Nyack accused Predictive Technology Group Inc. of Salt Lake City of fraud and breach of contract in a May 5 complaint filed in U.S. District Court in White Plains.
“Predictive violated the implied covenant of good faith and fair dealing,” the complaint states, by “misrepresenting its willingness and ability to pay for Equitas”™ services.”
Predictive Technology Group did not immediately respond to a message asking for its side of the story.
Equitas does scientific research and analysis for companies developing pharmaceutical products.
Predictive is a publicly traded company that specializes in diagnostic tests for women, such as infertility tests. It recently announced development of a COVID-19 antibody test.
Equitas first consulted for Predictive in 2016. Their relationship turned contentious in 2018, according to the complaint, when Predictive withheld payments for help getting U.S. Food and Drug Administration product approval. That dispute was resolved a year ago.
Predictive went back to Equitas this past September for consulting work on two projects. Equitas was to receive $760,000 and 1,250,000 shares in Predictive stock.
Equitas demanded a fixed fee, paid in installments, and assurances that it would receive the entire amount even if either party terminated the deal early.
Predictive quickly fell behind on monthly payments, according to the complaint. The companies worked out a payment plan in February, but two weeks later Predictive allegedly said it would not make the March 1 payment.
Equitas notified Predictive of a breach of contract on March 12, the complaint states, and Predictive did not respond or make any payments. Equitas terminated the deal in April and demanded immediate payment of $551,080.
Equitas is represented by San Francisco attorneys Justin L. Sowa and Gordon C. Atkinson.
