The Georgia Attorney General has aggressively pursued stem cell clinic firms including one called Superior Healthcare.
There is some more good news from Georgia. The FTC is involved too.
Superior Healthcare, et al must pay $5.1 million
Georgia AG Chris Carr has won more than $5.5 million in a judgment against this stem cell clinic firm and its leaders. In addition, these folks are barred from having anything to do with regenerative medicine in the future.
This is a big win for consumers and for the legitimate stem cell research field. It’s wonderful that almost 500 consumers are getting refunds:
“co-founders Steven Peyroux and Brent Detelich (must) pay $3,310,146 to the State of Georgia to provide refunds to 479 Georgia consumers.”
Further:
“In addition, Peyroux, Detelich, and Physicians Business Solutions are required to pay $1,845,000 in civil penalties based on the Court’s findings that the Defendants acted in bad faith, that there was significant injury to the public, and the importance of vindicating the authority of the Georgia Attorney General’s Consumer Protection Division. The Court entered a total monetary judgment of $5,155,146.”
AGs have major impact on unproven clinics
This is likely to be one of the most impactful stem cell lawsuits. It’s encouraging that state AGs are so active on the unproven clinic front. The fact that this was a team effort with the FTC makes it even better. I hope we can see more of that. Here’s the FTC press release on the $5.1 million stem cell case, focused on another business name in this case, Stem Cell Institute of America. Then there is also Regenerative Medicine Institute of America. This pattern of having many business names is also common in the unproven biologics sphere.
The Georgie case outcome reminds me of the past New York AG stem cell clinic case. In an odd coincidence, Letitia James’ office also received a monetary outcome of around $5.1M from the clinic Park Avenue Stem Cell.
Actions by AGs on clinics may become even more important over the next four years. It’s unclear how well the FDA can continue to oversee this space. Further, state medical boards continue to largely ignore the unproven clinic problem.