Clients File Class-Action Lawsuit After Sudden Closure Of Surrogacy Agency, Loss Of Payments

Main Category: Fertility
Also Included In: Women's Health / Gynecology;  Litigation / Medical Malpractice
Article Date: 17 Apr 2009 - 1:00 PDT

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Dozens of clients of Modesto, Calif.-based surrogacy agency SurroGenesis filed a class-action lawsuit against the company this week, alleging that it committed fraud and breach of contract by abruptly closing in March without explanation, the Los Angeles Times reports. The lawsuit, filed in Alameda County Superior Court, names SurroGenesis and its escrow company, Michael Charles Independent Financial Holding Group. According to the Times, the plaintiffs claim that SurroGenesis was given as much as $100,000 per couple in exchange for assistance in finding surrogate mothers. In addition, some surrogates allege they stopped receiving payments from SurroGenesis midway through their pregnancies. According to Ted Penny, an attorney representing more than 60 couples, the bank at which SurroGenesis maintained an account has said that the account is empty. Penny said that attempts to contact SurroGenesis executives, including owner and CEO Tonya Collins, have been unsuccessful. Collins' attorney declined to comment, the Times reports.

Several couples also have contacted the FBI and local authorities in Modesto. FBI spokesperson Steve Dupre said that agents would start reviewing complaints soon (Yoshino, Los Angeles Times, 4/15).

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