StemGenex Class Action Says Stem Cell Treatments Are a Fraud

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Update: 

• Final approval has been given for a $3.65 million settlement between StemGenex Medical Group and patients who purchased stem cell treatments from the now-bankrupt company.
• The settlement agreement comes after five years of litigation. 
• The settlement fund, excluding attorneys fees and other out-of-pocket expenses, will be divided among 1,063 class members.
• StemGenex had been accused in a 2014 complaint of misleadingly marketing and selling stem cell treatments to desperate patients with incurable conditions. 
• Patients claimed the treatments didn’t work as advertised and that StemGenex had no reason to think that they would.
• StemGenex unsuccessfully attempted to get the complaint dismissed in 2017.
• StemGenex filed for Chapter 7 bankruptcy in 2019 only months after the class action lawsuit filed against it was certified.

(11/18/2016)

A Florida woman says StemGenex Medical Group Inc. has been tricking persons with degenerative diseases into buying useless stem cell treatments.

Plaintiff Selena Moorer claims StemGenex has been running a sham stem cell treatment operation, bilking thousands of dollars out of individuals with painful and disabling medical conditions.

According to this StemGenex class action lawsuit, the company offers stem cell treatments to people with medical conditions causing pain or disability. The company has been operating out of La Jolla, Calif. since 2011.

The treatments in question involve removing the patient’s own body fat through liposuction, processing stem cells supposedly drawn from that body fat, then reinjecting the processed stem cells back into the patient.

Moorer quotes promotional material from StemGenex that claims the company’s stem cell methods can treat a long list of different conditions. On its website, the company claims to offer treatments for Alzheimer’s disease, COPD, rheumatoid arthritis, osteoarthritis, diabetes, Parkinson’s disease and multiple sclerosis.

Degenerative diseases like these are generally considered incurable by the relevant scientific community, Moorer says. She claims there’s a general scientific consensus that there are no effective treatments for these diseases.

Moreover, the FDA has not approved StemGenex stem cell treatments for any condition – and StemGenex admits as much on its website, Moorer claims.

According to the class action lawsuit, StemGenex targets persons who have been rendered both emotionally and financially vulnerable by their degenerative diseases. The company encourages clients to return for multiple treatments, claiming the effect of stem cell treatments is cumulative.

She claims StemGenex’s claims of certification by the Accreditation Association for Ambulatory Care are blatantly false, as are the company’s claims of 100 percent customer satisfaction.

Moorer says she was swindled into paying StemGenex thousands of dollars to treat her lupus. She alleges she reviewed the representations on StemGenex’s website after the company initiated contact with her. Moorer says she was led to believe that a StemGenex stem cell treatment would greatly improve her lupus.

Based on those representations, she decided to purchase a StemGenex stem cell treatment at a total cost of $14,900,

Moorer says she received no benefit from this treatment. When she told StemGenex she was dissatisfied, the company only offered to sell her another treatment at the same price. The company also never varied its claim of 100 percent customer satisfaction, she says.

Moorer is proposing to represent a plaintiff Class consisting of all persons in the U.S. who purchased stem cell treatments from StemGenex between Dec. 8, 2013 and the present.

She is asking the court for an order barring StemGenex and all its associated business entities and agents from continuing any of the allegedly illegal practices complained of here. She is also asking for a damage award including treble damages as provided by RICO, disgorgement of all money unjustly obtained, and reimbursement of court costs and attorneys’ fees with interest.

Moorer is represented by attorneys Janice F. Mulligan, Elizabeth A. Banham and Brian K. Findley of Mulligan Banham & Findley.

The StemGenex Fraudulent Stem Cell Treatments Class Action Lawsuit is Selena Moorer v. StemGenex Medical Group Inc., Case No. 3:16-cv-02816, in the U.S. District Court for the Southern District of California.