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Cord Blood Registry Class Action Lawsuit Overview:
- Who: Families lodged a class action lawsuit against CBR Systems, Inc, the company that runs Cord Blood Registry.
- Why: The families say that CBR promised them one rate, but then slapped on unexpected fees to store their children’s cord blood.
- Where: The Cord Blood Registry lawsuit was filed in California.
Cord Blood Registry abuses families who rely on the company to store their children’s cord blood, forcing them to pay undisclosed storage fees in acts that are “unlawful, deceptive, and ethically reprehensible,” a new class action lawsuit alleges.
The class action lawsuit was filed in California on Tuesday by lead plaintiffs Amy Cohen and Katharine Vaccarella who allege that CBR Systems, Inc., which runs Cord Blood Registry (CBR), and other affiliates violate state and federal laws with undisclosed fees.
Cord blood, which is found in the blood vessels of the placenta and the umbilical cord collected after a baby is born and after the umbilical cord is cut, is used in hematopoietic stem cell transplantation procedures, which are done in patients with disorders affecting the blood system, says the Cord Blood Registry lawsuit.
“While CBR’s mission may seem altruistic, they abuse the very Consumers who depend on their services in the event of a health emergency,” the pair allege.
“Specifically, CBR uses their possession and control of the cord blood to force Consumers to pay undisclosed costs to ensure the continued preservation of their children’s cord blood.”
More Than 900K Families Use Cord Blood Registry
Cord Blood Registry has more than 900,000 cord blood samples in its warehouse in Arizona for parents to be able to use in the future, according to the class action lawsuit.
When consumers sign up with CBR Systems to protect their children, they pay an initial fee of around $1,500.00, in addition to shipping costs of $150 to $170. They also contract with CBR to pay an annual storage fee of at least $125.00 over the lifespan of the cord blood storage in CBR’s Arizona warehouse, “which CBR deceptively leads Consumers to believe is a fixed fee through their sales representatives, website representations and the service contract,” say the plaintiffs.
“However, unbeknownst to consumers and inconsistent with CBR’s pervasive marketing, advertising, and uniform service contract, the annual fee is not fixed. Rather, CBR slyly and substantially increases the annual fee over time.”
‘Fixed’ Cord Blood Registry Fees Keep Increasing, Say Families
Cohen, who is the grandparent of two children whose cord blood is stored and preserved by CBR, signed a contract with the company in October 2012, and another in November 2013, for the collection and storage of her two grandchildren’s cord blood.
She says that for the 2012 contract, she paid “a hefty upfront initial cost” of $1,945, including shipping of $150, and a fixed annual storage fee of $125. But by 2020, that fee had increased to $180.
In the 2013 contract, Cohen says that she agreed to pay $1,595, including shipping of $170, and a fixed annual storage fee of $130.00. She says that she is now paying $175.
Vaccarella says that she agreed to an initial cost of $1,595, including shipping of $170, for the storage of her child’s cord blood, and a fixed annual storage fee of $130. However, by 2020 that fee had gone up to $160.
The pair were harmed by CBR’s “immoral, oppressive, and unlawful conduct,” the claim reads.
Life Saving Material Held Hostage by Cord Blood Registry, Claim Families
“Cord blood contains blood-forming stem cells that can be used in the treatment of patients with blood cancers, such as leukemias and lymphomas, as well as certain disorders of the blood and immune systems, such as sickle cell disease and Wiskott-Aldrich syndrome.”
According to the class action lawsuit, while CBR’s mission may seem altruistic, they “abuse the very consumers who depend on their services in the event of a health emergency.”
“Specifically, CBR uses their possession and control of the cord blood to force consumers to pay undisclosed costs to ensure the continued preservation of their children’s cord blood,” the Cord Blood Registry lawsuit reads. It says it does that by “slyly and substantially increases the annual fee over time, so that consumers are paying hundreds of additional dollars in excess of the contracted amount over the course of the cord blood storage.”
The class action lawsuit adds that when consumers cannot afford to pay the “deceptive and unlawfully increased annual storage fees,” CBR notifies the consumers that the company now “owns” their children’s cord blood and the families lose any possibility of ever being able to use it.
“CBR takes advantage of the sacred bond between child and parent, relative, and caregiver, and abuses families who may ultimately have to depend on CBR’s services in order to overcome terminal illness, thereby harming consumers and the public at-large.”
Cohen and Vaccarella want to represent anyone in the country who has contracted with CBR, and also anyone who has done so in Florida and New Jersey. They are suing for violations of California, New Jersey, and Florida unfair competition and advertising laws, and breach of contract, express warranty, and more.
They seek certification of the Class, order of injunction, damages, interest, legal fees and costs, and a jury trial.
Canadian families lodged a lawsuit against a cord blood bank, concerned that the company is failing to properly store or maintain life saving stem cells.
Do you think CBR should be able to increase its annual Cord Blood Registry storage fees to fund business operations? Let us know your thoughts in the comments section!
The families are represented by Alex R. Straus, Rachel Soffin, Harper Segui, Jonathan Cohen, Blake Yagman, and Erin Ruben of Milberg Coleman Bryson Phillips Grossman, PLLC.
The Cord Blood Registry Storage Fees Class Action Lawsuit is Cohen v. CBR Systems, Inc. Case No. 3:21-cv-06527 in the U.S. District Court Northern District of California.
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4 thoughts onCord Blood Registry Forces Families to Pay Undisclosed Costs to Store Children’s Blood, Class Action Alleges
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As a Loving Grandmother we decided to Invest in our Grandsons Cord Blood putting down a Substantial Deposit amount of money of $3000 with annual fixed rate fee of $200. 12 years later the fee has raised to approximately $400. As I realize lots of Parents are being taken advantage of by this Untruthful Cord blood companies charging them outrageous fees – I’d like to Implement a New Cord Blood Registry Program – Where The CBR PAYS THE PARENTS a MONTHLY CHECK – for The Parent Allowing CBS to Store & Use Their Baby Stem Cells for Cancer treatments in Hospitals all over the world 🌎. Think about it – Parents must File Lawsuits immediately- This is Unacceptable.
I registered my sons cordblood in 2010 with cord blood registry (CBR) and was told the annual fee would stay fixed at $175. It continued to rise, first in small increases and by 2020 they significantly increased it to $275. Now in the year 2022, they have upped it to $375. It is killing me. I have invested thousands and cannot afford to lose it and they are taking full advantage.
My two granddaughters cord blood storage is with Alpha Cord (they purchased Miracel years ago). It was in contract no increase. I have seen an increase and will address it with them. I recently reviewed my contracts. Granddaughters born 2005 & 2007. Alpha cord may not realize my contract said no increase. It’s wrong to increase annual cost if stated in original contract.