Facts

Former patients of a stem cell therapy clinic sued the clinic and its owners/physicians claiming that they had been exposed to a false and misleading marketing campaign which induced them to purchase a stem cell therapy treatment. Among other claims, Class Members alleged that the defendants' website and emails included statements about customer satisfaction with the stem cell therapy treatment which were exaggerated or untrue. Most Class Members traveled to San Diego to receive treatment and paid at least $14,900 for it. A class of 1,063 individuals was certified by the District Court and affirmed on appeal by the Ninth Circuit. Class Members pursued one defendant entity through Bankruptcy Court. After more than five years of litigation, Class Members resolved their claims with the parties in two separate settlements just before trial which were approved by the District Court.

PLAINTIFF'S CONTENTIONS: Class Members alleged they suffered damages as a result of the defendants' false and misleading marketing regarding the customer satisfaction rates of a stem cell therapy treatment advertised by defendants. Class Members typically paid $14,900 for the treatment and contended they were owed a partial refund as a result of the alleged false and misleading marketing materials.

DEFENDANT'S CONTENTIONS: All defendants denied that the marketing materials were false or misleading, and denied that any class members were entitled to any refund.

Settlement Discussions

On Aug. 20, 2020, the parties attended mediation with Judge Carl West (Ret.) of JAMS. Subsequently, plaintiffs and Andre P. Lallande, D.O. reached an agreement to settle the class members' claims against Dr. Lallande, individually, for $2,500,000, which was given final approval by the court on May 4, 2021. The remaining parties attended multiple Mandatory Settlement Conferences with Judge Allison Goddard in 2021, which resulted in a settlement between the class members and all remaining corporate and individual defendants for $1,150,000, which was given final approval by the court on Feb. 25, 2022. The total settlement is $3,650,000.

Result

Final approval of class action settlement for $3,650,000.