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Breaking New on the US Stem Cell Case: SVF Destruction Order Stayed and SVF Owners Intervene in the Suit

Breaking New on the US Stem Cell Case: SVF Destruction Order Stayed and SVF Owners Intervene in the Suit

Last week was busy in the US Stem Cell case and some much needed help arrived.

First, to their credit, the defendants in the case moved to stay the SVF destruction order for the product it was banking for patients/customers. Although the judge was skeptical that these people had a prioprietary interest in their banked SVF product, she did grant the stay, on technical grounds, basically saying that she’ll continue the stay until the later of the expiration of the defendant’s time to appeal her final decision, or if they do appeal, until the Eleventh Circuit Court of Appeals dissolves her stay pending appeal. The bottom line is that so long as the defendants appeal the final decision, the SVF product will not be destroyed well into the appeal process. That is certainly good news for the people who have banked their SVF with the company. Here is the judge’s order:

I haven’t done a deep dive into the cases she cited, but I think the judge is oversimplying things, and their are serious arguments to be made. More simply put: I think she is wrong on the law or or at least wrong on the equities involved.

The other big news is that last week, a Florida law firm appeared in the case on behalf of some of the people whose SVF is the subject of the destruction order, via a motion to intervene. Here is the intervention motion:

I’m not sure how this is going to play out since the judge has already issued a final judgement in the case. I suspect these consumers will end up being part of the appeal, which is probably what the lawyers are thinking, but we will just have to wait and see.

It’s all good news for everyone who has their SVF banked at the US Stem Cell facility. Now at least there will be someone directly protecting their interests.

I still think that the proper resolution is to allow these people to remove their property from the defendants’ possession and shipping it to some other location, probably out of the country. Initially, the FDA probably won’t like that idea, so the intervenors are going to have to find some additional means of persuasion. We will see what happens.

Rick Jaffe, Esq.