Redhawk Medical Products & Services, LLC has filed a significant lawsuit that could reshape business dealings in the medical supply industry. On May 2, 2025, Redhawk lodged a complaint in the United States District Court for the Western District of Louisiana against Advanced Energy Group, LLC, AEG Medical Supply, LLC, and Coastal Group Partners, LLC. The plaintiff accuses these companies of orchestrating a fraudulent scheme that resulted in a breach of contract and substantial financial losses.
The case centers around an alleged fraudulent scheme involving the sale of personal protective equipment (PPE). Redhawk claims that it was misled into believing that N95 Shield, LLC had secured funds to purchase 500 million 3M masks. According to the complaint, defendants Advanced Energy Group, AEG Medical Supply, and Coastal Group Partners manipulated bank records to falsely indicate available funds exceeding $24 billion. This deception allegedly led Redhawk to enter into a Sales and Purchase Agreement (SPA) with N95 Shield under false pretenses. "Defendants intentionally misrepresented that N95 had the funds required to complete the transaction," states the complaint. Redhawk further alleges that these actions constitute federal bank fraud and wire fraud under U.S.C. sections 1344 and 1343.
The complaint details how Redhawk was initially introduced to N95 Shield in early 2021 and subsequently entered into negotiations for a large PPE transaction facilitated by connections with major wholesalers like 3M. However, despite assurances from N95 regarding funding and purchase orders for masks, the defendants allegedly failed to deposit $9.5 million into an escrow account as stipulated by the SPA. This failure led to a breach of contract confirmed through arbitration on February 22, 2023. The arbitration concluded with an award favoring Redhawk amounting to nearly $45 million in damages plus attorney fees and interest.
Redhawk is seeking monetary damages from all three defendants for their roles in this alleged scheme. The company is also demanding reimbursement for legal costs incurred during this litigation process. In its prayer for relief, Redhawk requests judgment against Advanced Energy Group, AEG Medical Supply, and Coastal Group Partners for sums deemed reasonable at trial along with legal interest from judicial demand date until paid.
Representing Redhawk are attorneys André F. Toce from The Toce Firm APLC and Jason M. Welborn along with Jacob Hargett from Welborn & Hargett LLC among others involved in this high-stakes litigation case numbered Case No:6:25-cv-00598 presided over by Judge [Name] (not provided).