Suit over "Alleged Egg Sharing" Toss Again in Federal Court - ASRM & SART
In an order signed Friday in the District Court for the Northern District of California, Judge Fogel granted the Defendants' Motion to Dismiss, but ruled that the plaintiff, the Options National Fertility Registry, could file another amended complaint within 20 days..
For more information on this case see Suit Over Alleged Egg-Sharing Tossed Once Again
"Options, a bankrupt international registry of data pertaining to egg donation arrangements, filed the suit in October 2007 on behalf of a group of donors whose eggs the defendants, two organizations that represent doctors and clinics, allegedly gave to unknown and unauthorized recipients via an industrywide practice known as “egg-sharing,” in violation of legally binding contracts.
The suit alleged that from 1992 through 2003, the defendants and Options had written and oral contracts by which the defendants agreed not to transfer, donate, sell, give or otherwise dispose of any eggs or embryos of the donors to anyone other than recipients specifically designated in profile transfer requests signed by doctors.
But from 1992 to the present, the defendants have breached those contracts by engaging in egg-sharing without obtaining the consent of the donors at least two weeks prior to egg retrieval, Options alleged.
Options claimed it did not learn of the practice until January 2005, when a doctor testified that infertility doctors were encouraged by the defendants to participate in egg-sharing, according to court documents.....
The donors also fear that their offspring may have increased risk of unknowingly engaging in incestuous relationships because of the defendants' actions, according to the complaint.
In addition to punitive damages and attorneys' fees and costs, the suit sought to enjoin the defendants from engaging in unauthorized egg-sharing.
After Judge Fogel dismissed the complaint in October, ruling that the court lacked subject matter jurisdiction, Options filed an amended complaint in January, alleging the same state law claims for breach of contract, fraud and others, as well as two federal claims for civil Racketeering Influenced and Corrupt Organizations Act and antitrust violations.
The amended complaint alleged racketeering because the defendants violated Options' and the donors' rights and property interests, as well as antitrust violations because Options was driven out of business as a result of the defendants' slanderous statements.
In dismissing the amended complaint, Judge Fogel concluded that the Options' claims under the federal statutes were “so devoid of factual support as to border on the frivolous.”
Although Judge Fogel said it was dubious that Options could allege a viable racketeering or antitrust claim in the case, he granted the plaintiff leave to amend the complaint yet again."
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