The founder and chairman of Care A2 Plus misled regulators in the United States in a bid to enter the lucrative infant formula market, increase its valuation and “personally receive a windfall” from an ASX-listing, the company’s former distribution partner has claimed in a Florida court.

Care A2 Plus founder Dominic Galati is being personally sued, along with chairman Walter Bungo and chief executive Steve Loader, by Gensco Pharma, which alleges the company incorrectly told the US Food and Drug Administration (FDA) that it had more than 1 million formula tins ready to ship.