The office of Arizona's Attorney General Kris Mayes has announced the filing of a lawsuit against CBR Systems, Inc., one of the largest cord blood banking companies in the nation, the lawsuit alleges that CBR engaged in deceptive and unfair practices, exploiting attention in the cord blood banking sector, this according to details shared by the AG's office.
Attorney General Mayes' accusation states that CBR misled families at a crucial juncture in their lives, the occasion of their child's birth, at a time when they sought to secure health for the imminent future by preserving their newborns' cord blood and tissue, which are rich in life-saving stem cells, but CBR, according to the lawsuit, misrepresented its protective services and compromised the viability of the precious biological material by negligent handling and storage, Mayes said: "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."
Further detailing the alleged unethical practices, the Attorney General's office claims that CBR conducted a kickback scheme with healthcare providers and doctors, who received financial inducements, such as free lunches, gift cards, and payments up to $700, to refer parents to CBR's services, creating a semblance of medical approval the company's undertakings were not unbiased recommendations but rather the result of secret financial transactions, a dynamic revealed in the court filing.
On top of seeking restitution for families that might have suffered financial losses due to CBR's practices, the lawsuit is pursuing civil penalties of up to $10,000 for each willful violation, an injunction to stop CBR from further deceptive practices in Arizona, and force the company to relinquish any profits gained unlawfully, with Attorney General Mayes vowing to uphold the transparency and honesty consumers deserve, promising that as long as she is in charge, companies taking advantage of new parents will be held responsible for their actions.
Arizona’s Attorney General’s Office is reaching out to constituents who may have been affected by CBR’s services to come forward and submit complaints online, further demonstrating the office's dedication to consumer rights and its initiative to address corporate malfeasance within the healthcare-related industry.
