The charity terminated the grant and now demands PnuVax pay back the remaining funds and money spent on anything other than the vaccine.
The Bill and Melinda Gates Foundation granted PnuVax up to $30million to develop a pneumonia vaccine for children in developing countries but is now suing the for-profit company for mismanaging the funds.
The Bill and Melinda Gates Foundation first became involved with PnuVax in 2014 when it awarded the company $6million and then another $3million in 2015.
Then in August 2017, the company was granted $3million with a promise to award up to $29,423,549.
It also revealed the company had paid for materials and equipment that were either made or invoiced before the grant was awarded.
The foundation is now suing for damages and demanding PnuVax pay back all funds that were not used on the vaccine.
It also seeks a declaration that it has no obligation to pay PnuVax Inc. »