Stem Cell Clinic Doctor Settles Consumer Case for $2.5 Million

A California rheumatologist’s insurer will pay $2.5 million in a partial settlement of a class action alleging a San Diego stem cell clinic duped consumers into expensive treatment by misrepresenting customer satisfaction, under the terms of an agreement preliminarily approved by the Southern District of California.

The plaintiffs allege that the defendants engaged in a nationwide scheme to “wrongfully market and sell ‘stem cell treatments’” to consumers who are often “sick or disabled, suffering from incurable diseases and a dearth of hope.”

The partial settlement will resolve claims against Dr. Andre P. Lallande but not against Stemgenex Medical Group Inc., ...