Medical-Supply Firm Sues Bank Over Broken Coronavirus Deal

By The Washington Post - June 12, 2020

Some U.S. states see a surge in hospitalizations; the Republican National Convention moves its main events to Jacksonville, Fla.; DoorDash nears a deal to secure new funding. WSJ’s Shelby Holliday has the latest on the pandemic. Photo: Mark Ralston/AFP

WASHINGTON—A politically connected medical supply company alleged that the improper actions of its bank caused it to lose a $600 million order for coronavirus supplies, ruined its business, triggered death threats to its founders and ruined their reputation.

In a suit filed Friday in a Virginia federal court, Blueflame Medical LLC contends that as it was waiting for a down payment from the state of California, an official at Chain Bridge Bank told California’s treasurer that the company might be “fraudulent.”