By LawInspectsMissouri China Lawsuit involves the State of Missouri and the Chinese Communist Party, and concerns allegations regarding hoarding of personal protective equipment by China during the Covid-19 pandemic. The lawsuit was filed in the early months of the pandemic by the office of the Attorney General of Missouri.
A federal court found China liable for damages for hoarding personal protective equipment during Covid-19 pandemic, as alleged in the lawsuit. Consequently, the judge awarded $24 billion in damages to the State of Missouri. This is one of the biggest legal victories in the history of Missouri. China, however, has dismissed the judgment. Missouri is determined to implement the judgment and plans to recover the amount by seizing Chinese assets.
Highlights of the Lawsuit: Origins and Allegations
Missouri China Lawsuit was filed in the month of April 2020, during the early phase of the Covid-19 pandemic, by the then Attorney General of Missouri, Eric Schmitt. The lawsuit named the Chinese Communist Party or CCP, Wuhan Institute of Virology and other Chinese entities as defendants in the case.
As per the lawsuit, the Chinese Communist Party and other Chinese entities obstructed the production, purchase and export of essential medical equipment, including personal protective equipment, which exacerbated the Covid-19 pandemic and harmed the citizens of Missouri. To this end, the lawsuit claimed, China took control of the American factories producing PPE, and obstructed the supply of protective gear to the citizens of US and other countries.
The State of Missouri also claimed serious financial losses during the Covid-19 pandemic, as a result of the actions undertaken by China. As per the state’s submissions in court, it lost over $8 billion in tax revenues due to disruptions caused by the Covid-19 pandemic, and spent $122 more on PPE than it would have without China’s wrongful actions.
The lawsuit also accused the Chinese government of withholding information regarding the existence and spread of the Covid-19 virus, thereby leading to its fast spread in US and other countries worldwide.
Initial Dismissal and Subsequent Appeal
Missouri China Lawsuit was dismissed in the year 2022 by Judge Limbaugh of the US District Court for the Eastern District of Missouri. In a ruling, the judge cited Foreign Sovereign Immunities Act to dismiss the lawsuit against China. It is pertinent to note here that even though foreign governments can be sued in US courts, the Foreign Sovereign Immunity Act narrows down the scope and circumstances to file such lawsuits.
Missouri appealed against the ruling, and in January 2024, US Eighth District Court of Appeals allowed the lawsuit to proceed and sent it back to the district court. However, the Court of Appeals allowed only the claim of hoarding of protective equipment to proceed, while agreeing with the lower court’s ruling that the claim regarding Chinese complicity in spreading Covid-19 was barred by the FSI Act.
Judgement in the Lawsuit
On March 8, 2025, Judge Limbaugh ruled in favour of Missouri and awarded $24 billion in damages to the state against Chinese Communist Party and other defendants. In his ruling, the judge said Missouri’s lawyers had entered substantial evidence to prove that China knew about the existence of Covid-19 virus and the scope of its human-to-human transmissibility, long before sharing the information with the world. The ruling also indicted China for taking steps to nationalize American factories in China producing protective equipment, which increased PPE costs and led to shortages, thereby negatively affecting Missouri’s finances.
Judge Limbaugh accepted the $8 billion claim made by Missouri, and tripled the amount in accordance with federal laws. He also added an interest of 3.91% till the amount is recovered by the state.
Aftermath of the Judgment
Attorney General of Missouri, Andrew Bailey, called the ruling a “landmark victory” and said the Chinese cannot get away with causing untold suffering and economic devastation. Missouri is exploring ways to recover damages from China. One possible way which is being considered by the AG and other state officials is seizing Chinese assets in Missouri, including farmlands. The state is also sanguine on seeking the help of Trump administration to identify Chinese assets.
Chinese government has refused to acknowledge the judgment. In a statement, the spokesperson for the Chinese embassy in Washington denounced the ruling and warned of reciprocal countermeasures according to international law.