Cal­i­for­nia stem cell clin­ic to pay out $3.65M set­tle­ment to for­mer pa­tients for in­ef­fec­tive treat­ments

Four years af­ter the FDA ad­mon­ished stem cell clin­ic Stem­Genex for mak­ing du­bi­ous claims about its ser­vices in treat­ing in­cur­able dis­eases, and 3 years af­ter the com­pa­ny first filed for bank­rupt­cy, the clin­ic and its for­mer CMO seem to have reached their fi­nal des­ti­na­tion: a $3.65 mil­lion bill in a class ac­tion set­tle­ment.

Fed­er­al judge An­tho­ny Battaglia in San Diego gave fi­nal ap­proval to the deal in late Feb­ru­ary, with the in­sur­ance car­ri­ers for the now-dead clin­ic along with Stem­Genex’s for­mer CMO and os­teopath An­dre Lal­lande foot­ing the bill and pay­ing 1,063 for­mer clients. The in­sur­ance for the clin­ic will pay $1.15 mil­lion, and the in­sur­er for Lal­lande, a rheuma­tol­o­gist, will pay $2.5 mil­lion.

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