Orange County prosecutors Friday reached a $7.8 million settlement in a civil lawsuit alleging that two sister companies sold fetal tissue and stem cells for a profit margin exceeded by state law.
The settlement also shuts down the companies, DV Biologics and DaVince Biosciences, in California, according to the Orange County District Attorney’s Office.
The $7.8 million worth of assets and biological materials from the companies will be donated to a major U.S. medical school, according to prosecutors.
“This settlement seized all profits from DV Biologics and DaVince Biosciences, which they acquired by viewing body parts as a commodity and illegally selling fetal tissues for valuable consideration,” Orange County District Attorney Tony Rackauckas said. “These companies will never be able to operate again in Orange County or the state of California.”
The companies incorporated in March 2009 and principally did business in Costa Mesa and Yorba Linda.
The companies hired a marketing consultant and between 2009 and 2011 nearly tripled sales revenue by illegally selling tissues and cells from fetuses throughout the world.
It is not illegal to sell fetal parts, but the profit cannot exceed the costs for expenses.
Efforts to reach attorneys for the companies were not immediately successful.
–City News Service