Judge Approves StemGenex Client Settlement
A California federal judge has approved a $3.65 million settlement with 1,063 former clients of StemGenex, a La Jolla, CA, stem cell clinic, and its former chief medical officer. The clients’ class-action suit filed in 2016 alleged that they were misled by StemGenex advertising and promotional materials claiming that its treatment was effective against numerous conditions including lupus, diabetes, multiple sclerosis, Alzheimer’s disease, and Parkinson’s disease, the Los Angeles Times reports.
The report says class members will each receive about $1,936 from the settlement fund, with the remainder going to legal fees and expenses. Their suit claimed StemGenex charged $14,900 per treatment. The suit says none of the plaintiffs received “any significant benefit” from the treatment.
The Times says FDA has approved stem cell treatments only for certain blood-related conditions, and then only with stem cells from umbilical cord blood. The agency has cautioned consumers against accepting any other claims for stem cell therapies, saying they are “illegal and potentially harmful.”
In 10/2018, the report says, FDA sent StemGenex a “lengthy” Warning Letter saying that it was marketing an illegal drug. The letter also said the firm’s sanitary and sterilization procedures raised “potential significant safety concerns.”