Facts

Eferton DMCC sued Asia-Global Renewable Energy Corp., Terry Hou, DJL Mining LLC, and DJL Mining Corp., involving allegations of fraud.

PLAINTIFF'S CONTENTIONS:
Plaintiff was a "freezone" company under Dubai rules and regulations. It specialized in non-ferrous material products and raw materials. In 2015, plaintiff allegedly entered into six contracts with Hou's companies, World Gold and Shing Fu, related to copper shipments from the U.S. to China. DJL and Asia-Global was the alleged supplier of the copper. Among other things, Hou allegedly issued certificates of quality representing that the copper ingots would contain 97 percent copper. After fully executing its obligations under the contract, plaintiff discovered that the copper ingots did not have a copper content of 97 percent. Rather, one test showed that copper ingots contained only 5 to 8 percent copper. Plaintiff contended that the contracts were part of defendants' elaborate scheme to defraud. As such, plaintiff sued defendants, alleging fraud, civil conspiracy, negligent misrepresentation, breach of express warranty, and violation of California Business & Professions Code Section 17200 et seq.

Result

The parties entered into a consent judgment in favor of Eferton against DJL in the amount of $5 million for negligence.