Former Penn State football star Ki-Jana Carter faces lawsuit after $2.4M COVID-19 mask contract
A former Penn State star running back was accused by Penn State Health in a lawsuit filed earlier this month of failing to deliver nearly $2.4 million of masks during the coronavirus pandemic.
The health care system is seeking an outstanding refund of $935,000 from Ki-Jana Carter’s Florida-based company ByoGlobe, which is accused of not holding up its portion of a contract to deliver the masks.
“Penn State Health did not receive a single mask from ByoGlobe,” attorney Tony Lucido wrote in the 52-page lawsuit filed in Dauphin County. “ByoGlobe breached its agreement with Penn State Health by failing to deliver any masks.”
Lucido declined to comment Tuesday. The health care system said in a written statement that it attempted to “amicably resolve” the dispute, but has been “unsuccessful.”
Carter, who is ByoGlobe’s CEO, pledged his company could deliver upward of 400,000 masks no later than April 15. A contract was ironed out and Penn State Health wrote that it wired the entire balance to ByoGlobe.
The money was supposed to be held in escrow with legal oversight, but wasn’t, Lucido wrote. The health care system acknowledged it “does not know” where the $2.4 million ultimately went.
What is certain, Lucido wrote, is that Penn State Health didn’t receive a single mask from ByoGlobe. The health system canceled its purchase May 7 and “demanded” a full refund.
Carter’s company refunded nearly $1.5 million by July 5, but the remaining total has not been paid back. No payments have been made since, Lucido wrote.
The former No. 1 draft pick in the 1995 NFL draft could not be immediately reached for comment Monday. ByoGlobe declined to comment.
ByoGlobe was accused of breach of contract, unjust enrichment and negligent and intentional misrepresentation. The health care system is also seeking to make Carter personally responsible for the unpaid refund.
“ByoGlobe and Carter reneged on its promises, failing to deliver a single personal protective equipment mask to Penn State Health and further failing to protect the money by placing it in an escrow account,” Lucido wrote. “... Injustice in this matter can only be avoided if ByoGlobe is required to make good on its promises and pay Penn State Health $935,000, which represents money received and improperly retained by ByoGlobe.”
This story was originally published December 21, 2020 at 3:24 PM.