A La Jolla clinic pitching $15,000 stem cell treatments files for bankruptcy, facing a lawsuit from former patients.
Customers said in depositions filed in the lawsuit that they were told the clinic had. Indeed, as they could tell from the StemGenex website or from promotional material sent to them, the clinic had a 100% patient satisfaction rating.
As it turned out, however, the success rate the firm’s agents cited was inaccurate, according to former executives. The “patient satisfaction rating” had nothing to do with whether the treatments worked medically, Alexander acknowledged in a deposition, but referred only to features such as the hotel accommodations the patients received.
In fact, a former StemGenex executive, asked by a plaintiff’s lawyer if there was any scientific basis to make the claim, answered: “There is none.” The firm’s bankruptcy filing automatically places the class-action case on hold. But Timothy Williams, an attorney for the plaintiffs, said they intend “to pursue the case, whether in bankruptcy court or district court.” He said that even if StemGenex is found to have few assets, the plaintiffs will proceed against the firm’s insurers and other named defendants, including Alexander and former physicians associated with StemGenex.
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