Breast milk co-op sues manufacturer for defamation, breach of contract and business interference

BOULDER CITY, NV (June 30, 2020) – Medolac Laboratories continues to prepare for the upcoming trial in its lawsuit against Prolacta Bioscience, alleging defamation, breach of contract and tortious interference. Medolac, an industry leader in providing shelf-stable, human milk-based infant nutrition products, alleges that Prolacta violated a separation agreement between Medolac founder Elena Medo and Prolacta. It further alleges that Prolacta defamed Medo and interfered with Medolac’s business operations. Prolacta is also being sued by a former employee for discrimination, retaliation, wrongful termination and false imprisonment while facing a third lawsuit for harassment and discrimination.

Medo is a pioneer in the commercial breast milk industry. She founded both companies, leaving Prolacta in 2009 and starting Medolac. Her exit from Prolacta included a joint separation agreement which contained a mutual non-disparagement clause.

In 2015, Prolacta filed a lawsuit against Medolac with many disparaging statements about Medo which caused significant damage to Medolac. According to the Medolac lawsuit, a deal with a large national hospital operator, that would have been worth millions of dollars in revenue, was scuttled because of the suit. Prolacta’s legal actions also caused Medolac’s funding partners to either pull their support or offer less favorable financing terms with explicit reference to the litigation.

According to the Medolac complaint, Prolacta’s lawsuit was commenced with the explicit goal of harming Medolac’s business, and former employees of Prolacta will testify that they heard Prolacta’s senior executives confirm this.

Last year, Prolacta and its CEO Scott Elster were sued by a former director of human resources, alleging discrimination, retaliation, wrongful termination and false imprisonment. That lawsuit alleges discriminatory and harassing conduct, including instances where the senior vice president of operations Mark Hannon made disparaging remarks regarding the sexual orientation of employees and asked an African American employee about word choices when using racial epithets.

In a third lawsuit, Prolacta is being sued by former employees, alleging harassment and discrimination.

Medolac develops solutions for the large-scale supply of human breastmilk that is both priced at a more accessible level and available to the hospitals and clinics in the quantities that they need to treat sick infants. Copies of the legal complaints are available for download at


Source: Medolac Laboratories

Contact: John P. David