Lingering lawsuit over bogus claims from defunct La Jolla stem cell clinic settles for $3.65M

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Lingering lawsuit over bogus claims from defunct La Jolla stem cell clinic settles for $3.65M
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StemGenex, which went bankrupt in 2019, was sued for exaggerating customer satisfaction in its marketing for fat-derived cell treatments for multiple serious diseases.

A long-running lawsuit against StemGenex, a defunct La Jolla clinic that offered dubious, fat-derived stem cell treatments for a host of ailments, has been settled for $3.65 million.

While StemGenex claimed 100 percent satisfaction in its marketing materials, many people who received treatment complained that it was ineffective.The settlement highlights the ongoing pushback from patients who are suing unproven stem cell clinics, particularly in the fat and birth related space, said Paul Knoepfler, a stem cell researcher at UC Davis School of Medicine, in a blog post about the case.

However, patients reported the procedure didn’t work, according to the lawsuit. They typically paid $14,900 per treatment. In 2019, StemGenex filed for Chapter 7 bankruptcy liquidation. Few assets remained after creditors were paid, leaving the litigants to pursue malpractice and other insurers.

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