Nine American families who had hoped to adopt Marshallese babies through the Legacy International Adoptions are now suing the Utah agency.
The families argue the agency it lied to them and duped birth mothers into travelling to the United States to relinquish their infants.
The adoptions were never finalised, but the lawsuit claims that the agency's actions violates state, federal and foreign law.
Legacy International Adoptions is the second Utah agency to come under fire recently for work in the Pacific.
In March, owners of Focus on Children were indicted for allegedly running a baby-smuggling operation in Samoa.