North Carolina Attorney General Josh Stein sued Stephen Gould Corp. in August, claiming it made separate offers to sell millions of N95 masks for as much as 15 times the prevailing market price to Duke Health, UNC Health, the state Division of Emergency Management and the Charlotte chapter of the American Red Cross.

The lawsuit said the company also told prospective buyers that its markup was 3%, when in fact it was more than 100%. The offers were made in March, as hospitals and others were trying to obtain equipment to protect front-line workers as the coronavirus was emerging in the state.

Gov. Roy Cooper declared a state of emergency over the coronavirus pandemic on March 10, activating the state's price gouging statute that prohibits selling or attempting to sell essential goods and services at "unreasonably excessive" prices.

None of the Stephen Gould sales actually took place, which the Attorney General's Office took into account in settling the lawsuit in Wake County Superior Court this week. In addition to $140,000 in penalties and $10,000 in fees and other costs, the court ordered the company not to violate the price gouging law in the future.

For its part, Stephen Gould did not admit to any wrongdoing but agreed to the court order to settle the matter. Attorneys for the company, which has an office in Morrisville, issued a statement Thursday.

"It is clear from the news that the market for personal protective equipment during the initial stages of the pandemic was volatile. Stephen Gould Corporation regrets that it became involved in that volatility by attempting to connect sources of masks with businesses in North Carolina," the company said.

"Fortunately, the company terminated those efforts shortly after they began and no medical masks were ever purchased or sold to any North Carolina business," the company said. "Moving forward, Stephen Gould Corporation will continue its efforts to be a good corporate citizen in North Carolina, as it has done for the past 35 years."

Stephen Gould is one of two companies the state has accused of violating the price gouging law during the COVID-19 pandemic. The other, A1 Towing Solutions of Charlotte, was accused of improperly booting or towing trucks delivering food, water, bleach or medical supplies during the pandemic and then forcing drivers to pay exorbitant amounts to get them released.

The state won a preliminary injunction against A1 Towing Solutions in May, limiting the fees it could charge. The towing company has appealed to the state Court of Appeals.

The state's price gouging law remains in effect at least through Nov. 13. Stein said the Stephen Gould case should stand as an example to other businesses.

"Sellers cannot take advantage of a crisis to make a profit, especially at the expense of front line health care workers and first responders who were risking their lives to care for their fellow North Carolinians with the coronavirus," Stein said in a written statement. "I'm pleased with this judgment, and I hope it will serve as a reminder to everyone that my office will not hesitate to take swift action against price gouging."