BLU PRODUCTS, INC. v. EXCESS TELECOM, INC., et al.

District Court, S.D. Florida·Decided August 20, 2026·No. 1:25-cv-22133·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA

Case No. 25-cv-22133-ALTMAN

BLU PRODUCTS, INC., Plaintiff, v. EXCESS TELECOM, INC., et al., Defendants. ___________________________________/

ORDER

Our Plaintiff, a mobile-device developer, sued a telecommunications company and its CEO, alleging that the telecom company had placed orders for customized mobile devices worth millions of dollars and then refused to accept delivery in a fraudulent scheme to extract lower prices from the Plaintiff. The Defendants now challenge our personal jurisdiction over them. After careful consideration, we DENY their motion to dismiss. THE FACTS1 Our Plaintiff—BLU Products, Inc. (“BLU”), incorporated in Florida and headquartered in Miami-Dade County—“develops, designs, and sells mobile devices (i.e., tablets, cellphones, and smartphones).” Complaint [ECF No. 1-1] ¶ 9. Our Defendants are Excess, a “telecommunications company” that “offers discounted devices and wireless service to telephone and internet customers throughout the United States,” id. ¶ 10 (cleaned up), and Cobby Pourtavosi, Excess’s “President, CEO,

1 We accept the allegations of the Amended Complaint as true for purposes of this Order. See Dusek v. JPMorgan Chase & Co., 832 F.3d 1243, 1246 (11th Cir. 2016) (“In deciding a Rule 12(b)(6) motion to dismiss, the court must accept all factual allegations in a complaint as true and take them in the light most favorable to plaintiff, but ‘legal conclusions without adequate factual support are entitled to no assumption of truth.’” (quoting Mamani v. Berzain, 654 F.3d 1148, 1153 (11th Cir. 2011) (cleaned up))). CFO, and Secretary,” id. ¶ 4. Pourtavosi is “a citizen and/or resident of California[.]” Ibid. The Plaintiff alleges that Excess is “a California corporation,” id. ¶ 3, while the Defendants contend that Excess is a “Nevada corporation with a principal place of business in Las Vegas, Nevada.” Notice of Removal [ECF No. 1] at 2.2 BLU claims that, “[b]etween August 9, 2022, and April 16, 2024, Excess placed a series of purchase orders with BLU for the procurement and purchase of a sum total of 2.9 million smart

mobile devices to be specially manufactured for Excess.” Complaint ¶ 11; see also Purchase Orders [ECF No. 1-1] at 14–31. The “cumulative price of Excess’s orders totaled $144,176,000[.]” Complaint ¶ 12. “[T]he purchase orders initiated by Excess required BLU to insert SIM cards specially suited to Excess’s needs during the corresponding factory production.” Id. ¶ 11. “BLU fully performed its obligations” under the Purchase Orders by “procuring and manufacturing 2.9 million smart mobile devices specially manufactured for Excess and installed with SIM cards specifically installed for Excess’s benefit.” Id. ¶ 17. On April 4, 2025, the Plaintiff sued the Defendants in Florida state court, alleging that “Excess failed to uphold its end of the bargain.” Id. ¶ 18. “At the time Excess placed its purchase order,” the Plaintiff claims, it “had no intention of fulfilling its contractual obligations under the purchase orders at the agreed upon prices specified” in those orders. Id. ¶ 14. Instead, the Plaintiff’s complaint alleges, “Excess intentionally ‘overcommitted’ on its orders—entering into simultaneous agreements with

multiple vendors for exceedingly large quantities of smart mobile devices—as part of a deliberate and calculated scheme to manipulate such vendors, including BLU, into financial distress and [to] enable Excess to exploit this vulnerability by forcing vendors, including BLU, to either drastically reduce the agreed upon prices for the already procured and specially manufactured devices, or be forced to

2 Because both parties agree that Excess isn’t a citizen of Florida, we needn’t resolve this dispute today. abandon the orders entirely, at a seismic loss.” Id. ¶ 15; see also id. ¶ 18 (“Using fraudulent and predatory practices to flood the marketplace, and BLU, with exceedingly large orders of devices and then refusing to honor the agreed upon pricing, Excess forced BLU – which had already procured 2.9 million devices in fulfillment of Excess’s orders – to either drastically reduce the pricing on such devices or be forced to abandon the orders altogether at a seismic loss.”). At first, the Plaintiff says, BLU “attempted to mitigate its damages by trying to resell the products[,]” but “Excess blocked” the

attempted resales “by maintaining the position that BLU was prohibited from selling devices that had been installed with SIM cards specifically installed for Excess.” Id. ¶ 18. As BLU explains, it was “left with no practicable choice but to mitigate its damages by selling to Excess 1.8 million of the 2.9 million devices ordered by Excess for a sum total of $14.8 million less than what was agreed upon in the purchase orders.” Id. ¶ 20. This is in addition to “an unforeseen surplus of 1.1. million devices,” which (BLU says) resulted in additional financial losses. Id. ¶ 21. BLU claims that the “Defendants perpetrated the foregoing scheme willfully and knowingly, in bad faith, and with fraudulent intent, seeking to leverage BLU’s resulting financial vulnerability to Excess’s financial advantage.” Id. ¶ 16. On May 8, 2025, the Defendants removed this case to our Court. See Notice of Removal [ECF No. 1]. And, on January 19, 2025, they filed their Motion to Dismiss (the “MTD”) [ECF No. 22], arguing only that “[t]he Complaint fails to allege sufficient facts to support specific jurisdiction because the purchase orders that are the subject of the breach of contract actions contain no duties that the

Defendants are required to perform or that take place in Florida.” MTD at 14. The MTD is now fully briefed and ripe for adjudication. See Plaintiff’s Response in Opposition to the MTD (the “Response”) [ECF No. 30]; Defendants’ Reply in Support of MTD (the “Reply”) [ECF No. 34]. This Order follows. THE LAW

“A plaintiff seeking the exercise of personal jurisdiction over a nonresident defendant bears the initial burden of alleging in the complaint sufficient facts to make out a prima facie case of jurisdiction.” United Techs. Corp. v. Mazer, 556 F.3d 1260, 1274 (11th Cir. 2009). “But if a defendant challenges personal jurisdiction in a Rule 12(b)(2) motion to dismiss, Federal Rule of Civil Procedure 12(i) affords the district court discretion on how to proceed.” N. Am. Sugar Indus., Inc. v. Xinjiang Goldwind Sci. & Tech. Co., 124 F.4th 1322, 1333 (11th Cir. 2025) (cleaned up). “The district court has two options: (1) hold an evidentiary hearing before trial to make factual findings about personal jurisdiction or (2) decide the motion to dismiss under a prima facie standard without an evidentiary

Free access — add to your briefcase to read the full text and ask questions with AI

BLU PRODUCTS, INC. v. EXCESS TELECOM, INC., et al., (S.D. Fla. 2026).

BLU PRODUCTS, INC. v. EXCESS TELECOM, INC., et al. (BLU PRODUCTS, INC. v. EXCESS TELECOM, INC., et al.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

William M. Rogers v. Joseph P. Nacchio
241 F. App'x 602 (Eleventh Circuit, 2007)
Republic of Panama v. BCCI Holdings (Luxembourg) S.A.
119 F.3d 935 (Eleventh Circuit, 1997)
Meier Ex Rel. Meier v. Sun International Hotels, Ltd.
288 F.3d 1264 (Eleventh Circuit, 2002)
Harry Palmer v. Eldon Braun
376 F.3d 1254 (Eleventh Circuit, 2004)
Financial SEC. Assur., Inc. v. Stephens, Inc.
500 F.3d 1276 (Eleventh Circuit, 2007)
Licciardello v. Lovelady
544 F.3d 1280 (Eleventh Circuit, 2008)
Internet Solutions Corp. v. Marshall
557 F.3d 1293 (Eleventh Circuit, 2009)
United Technologies Corp. v. Mazer
556 F.3d 1260 (Eleventh Circuit, 2009)
In Re Egidi
571 F.3d 1156 (Eleventh Circuit, 2009)
Hess v. Pawloski
274 U.S. 352 (Supreme Court, 1927)
International Shoe Co. v. Washington
326 U.S. 310 (Supreme Court, 1945)
Hanson v. Denckla
357 U.S. 235 (Supreme Court, 1958)
Helicopteros Nacionales De Colombia, S. A. v. Hall
466 U.S. 408 (Supreme Court, 1984)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Molinos Valle Del Cibao, C. Por A. v. Lama
633 F.3d 1330 (Eleventh Circuit, 2011)
Goodyear Dunlop Tires Operations, S. A. v. Brown
131 S. Ct. 2846 (Supreme Court, 2011)
Clark A. Huls v. Lusan C. Llabona
437 F. App'x 830 (Eleventh Circuit, 2011)