3M (NYSE:MMM) announced that it filed a legal action in federal court alleging that a seller on Amazon inflated prices of fake, defective and damaged N95 masks.
N95 masks have been in high demand as the COVID-19 pandemic roars on. In April, the U.S. Defense Dept. awarded a $76 million contract to 3M to produce the respirators under the Defense Production Act (DPA) and the company announced two more DoD contracts last month.
The lawsuit alleges that Mao Yu and affiliated companies defrauded customers by charging the inflated prices for the fake and damaged respirators, falsely advertising as third-party sellers under the 3M brand. The company alleges that the defendants charged unsuspecting customers more than $350,000 when they responded to false listings claiming to be selling authentic N95 masks.
3M’s allegations state that the defendants charged prices that exceed as much as 20 times the list prices for 3M’s N95 respirators. Amazon learned…