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StemGenex Stem Cell Therapy Fraud Class Action Settlement Overview
- Why: The settlement will end its involvement in litigation surrounding its allegedly useless and fraudulent stem cell therapy treatments that it sold to people with incurable and disabling medical conditions.
- Who: StemGenex reached a settlement with the plaintiff of a class action lawsuit.
- Where: The class action lawsuit was filed in California federal court.
StemGenex Medical Group Inc. and a lead doctor will pay $3.65 million to settle a class action lawsuit that claimed the company and its associates tricked patients with otherwise incurable diseases into buying fraudulent stem cell therapy treatments worth thousands of dollars.
StemGenex, which filed for Chapter 7 bankruptcy in 2019, will pay $1.15 million through its insurer Admiral Insurance Company. Andre P. Lallande, a doctor of osteopathic medicine who the class action lawsuit says was “wholly or partially responsible for the content of [StemGenex’s] advertising,” will shell out $2.5 million.
StemGenex Settlement Fund
US District Judge Anthoney J. Battaglia approved the final deal and granted class counsel 30% of the total settlement fund, or $1.1 million, in attorney fees. Counsel will also receive $460,000 from the settlement fund for out-of-pocket expenses.
Judge Battaglia also awarded the four class representatives a total sum of $15,500, to be distributed in varying amounts per individual.
Finally, the rest of the settlement fund will be divided among the 1,063 identified class members, according to court records.
StemGenex Targeted Sick Individuals With ‘Dearth of Hope,’ Complaint Said
The class action lawsuit was first filed in 2014 when the plaintiffs alleged that StemGenex had a nationwide scheme to target its stem cell therapy marketing towards “sick or disabled” individuals and those suffering from “incurable diseases and a dearth of hope.”
The stem cell therapy involved removing a patient’s body fat through liposuction, processing stem cells drawn from that fat, then reinjecting the processed stem cells back into the patient. The company’s website claimed it could treat Alzheimer’s disease, arthritis, diabetes, Parkinson’s disease, and multiple sclerosis.
Selena Moorer, who filed the complaint, said that StemGenex reached out to her to sell her the therapy to treat her lupus. Moorer said she believed the representations on the company’s website, and spent $14,900 for the treatment. When she told StemGenex that it did not seem to work as advertised, the company offered her more treatment at the same price.
What do you think of the settlement between StemGenex and its former customers? Sound off in the comments section below!
The settlement class was represented by Janice F. Mulligan, Elizabeth A. Banham, and Brian K. Findley of Mulligan Banham & Findley and Harvey C. Berger of Berger Williams & Reynolds LLP.
The StemGenex Stem Cell Therapy Fraud Class Action Settlement is Moorer v. StemGenex Medical Group Inc. et al., Case No. 3:16-cv-02816, in the US District Court for the Southern District of California.
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One thought on StemGenex, Lead Doctor to Pay $3.65M for Fraudulent Stem Cell Therapy Scheme
We had 5 treatments through stemgenex fir Alzheimer’s.