Attorney General Kris Mayes has initiated legal action against CBR Systems, Inc., accusing the company of deceptive practices in the cord blood banking sector. The lawsuit, lodged in Maricopa County Superior Court, claims that CBR misled consumers and engaged in unethical behavior involving healthcare providers.
CBR Systems is one of the largest cord blood banking companies in the United States. It offers services to parents who wish to preserve their newborns' umbilical cord blood, which contains stem cells used for treating serious diseases. However, Attorney General Mayes alleges that CBR failed to uphold its promises and participated in a kickback scheme with medical professionals.
"Families put their trust in CBR at a deeply personal and emotional moment—the birth of a child—believing they were making a responsible, potentially life-saving investment in their baby’s future," stated Attorney General Mayes. "Instead, our complaint alleges that CBR deceived parents about the potential uses and viability of their child’s cord blood and tissue while quietly paying kickbacks to doctors who recommended its services."
The complaint details how CBR purportedly mishandled the storage and transportation of cord blood samples. It accuses the company of not maintaining strict temperature controls during shipping, potentially compromising sample integrity.
Further allegations include misleading parents by criticizing public cord blood banks as inferior while not fully disclosing more affordable alternatives. The lawsuit also suggests that doctors were incentivized financially to promote CBR's services through gifts such as free lunches and gift cards.
"Families were not just misled by a company—they were misled by medical providers they trusted," said Attorney General Mayes. "New parents should be able to rely on their doctors to provide unbiased advice."
The Arizona Consumer Fraud Act is cited as being violated by these alleged practices. The Attorney General's Office seeks restitution for affected consumers, civil penalties up to $10,000 per violation, an injunction against further unlawful activities by CBR in Arizona, and disgorgement of profits gained through these actions.
Attorney General Mayes urges any Arizona residents who believe they have been deceived by CBR to file complaints with her office online at www.azag.gov/consumer.
"As long as I am Attorney General, any company that preys on parents during one of the most important moments of their lives will be held accountable," added Attorney General Mayes.
A copy of the filed complaint is available for review below.