Redwood Scientific Technologies facing $5000 a day fine for contempt

Last we checked on Redwood Scientific Technologies, parent company of RengaLife, they were continuing to dig themselves a deeper hole over alleged FTC Act violations.

Redwood have missed multiple production deadlines, primarily relating to discovery requests by the FTC.

Following a motion by the FTC to find Redwood in contempt of court, a hearing was held on May 29th.

It wasn’t until June 12th however that an order was made.

As per Judge Otero’s June 12th order, Redwood was ordered comply with the FTC’s requested discovery production – by express delivery that same day.

Failure by Redwood either to update its Relativity database, or to produce a copy of the updated Relativity database to the Federal Trade Commission by Federal Express for delivery by June 12, 2018, will be grounds for this Court to impose such sanctions as its discretion warrants to coerce Redwood into compliance …  including but not limited to daily sanctions of no less than $5,000 per day for such period as the Court deems appropriate, or other such sanctions.

Instead of complying with the order, Redwood filed a motion to amend the order with a June 19th extension.

This was rejected by the court on the grounds the motion contained multiple clerical errors.

A second motion was filed on June 13th, which the FTC filed opposition to later the same day.

Later the same day still Judge Otero denied Redwood’s motion – leaving the company in a particularly precarious position.

Petitioner Federal Trade Commission shall submit a written status report providing the FTCs initial assessment of Respondents compliance with the Courts Orders, including the FTCs assessment of whether coercive contempt sanctions are warranted, on or before July 13, 2018.

As at the time of publication the FTC has yet to file the requested Status Report.

Seeing as the regulator has already recommended $5000 a day fines and Redwood evidently still hasn’t complied, I don’t see their position having changed.

Stay tuned…

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