Court Rules in Favor of StemGenex on Majority of Allegations in Proposed Class Action Lawsuit
Apr 18, 2017, 04:15 ET
LA JOLLA, Calif., April 18, 2017 /PRNewswire/ -- The United States District Court, Southern District of California ruled in favor of StemGenex on a majority of allegations in the case of Moorer v. StemGenex Medical Group, Inc., 2017 WL 1281882, No. 16-cv-02816 (S.D. Cal. Apr. 6, 2017). The court's decision "granted in part defendants' motion to dismiss Plaintiff's second amended complaint."
According to David Rosenberg, attorney for StemGenex, the court's ruling essentially eliminates the bulk of the case against StemGenex, including false-advertising claims based on a lack of substantiation, finding that claims based on lack of substantiation could not be upheld.
"The court ruled against the Plaintiff's alleged omission of the material information that no data or reasonable basis supported the efficacy of the stem cell treatments," said Rosenberg.
The court stated, "False-advertising claims based on a lack of substantiation, rather than provable falsehood, are not recognizable under the California consumer-protection laws." Rosenberg noted that the court found "the stem cell treatments are at least 'reasonably related' to maintaining or improving the health of a prospective customer and do not constitute 'pure research'." The court added, "to the extent that stem cell treatments represent a fairly newer body of research and development, the court does not find the innovative nature of the treatment to rise to the level of requiring informed consent under the Code."
Overall, the court dismissed without prejudice "fraud and negligent misrepresentation claims as to the lack of efficacy misrepresentation, as well as Plaintiff's claims for human experimentation, financial elder abuse, and RICO."
Rita Alexander, Chief Administrative Officer of StemGenex Medical Group, stated, "We're extremely optimistic about this ruling that eliminated much of the Plaintiff's allegations. We believe sincerely and passionately in the adipose stem cell therapy we provide to our patients and look forward to being completely exonerated in this case."
Rosenberg acknowledged that elements of Moorer v. StemGenex Medical Group, Inc. were upheld, but stated, "We're extremely pleased with the court's ruling. We're confident that the court ultimately will rule in favor of StemGenex on the remaining issue related to this case."
ABOUT StemGenex Medical Group StemGenex Medical Group is committed to helping people achieve optimum health and better quality of life through the healing benefits of their own stem cells. StemGenex provides stem cell therapy options for individuals suffering with inflammatory and degenerative illnesses. Committed to the science and innovation of stem cell treatment, StemGenex sponsors five clinical outcome studies registered with the National Institutes of Health ("NIH") for Multiple Sclerosis, Parkinson's disease, Rheumatoid Arthritis, Chronic Obstructive Pulmonary Disease ("COPD") and Osteoarthritis. These have been established to formally document and evaluate the quality of life changes in individuals following adipose-derived stem cell treatment.
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SOURCE StemGenex