PHOENIX – Arizona Attorney General Kris Mayes has filed a lawsuit against CBR Systems, Inc. (CBR), one of the nation’s largest cord blood banking companies, alleging deceptive and unfair practices that misled families at a vulnerable moment—the birth of a child.
Allegations Against CBR
The lawsuit, filed in Maricopa County Superior Court, claims that CBR engaged in a systematic scheme to mislead consumers, failed to ensure the viability of stored cord blood and tissue, and secretly paid kickbacks to doctors who recommended its services.
“Families put their trust in CBR, believing they were making a responsible, potentially life-saving investment in their baby’s future,” said Attorney General Mayes. “Instead, our complaint alleges CBR deceived parents while quietly paying doctors to recommend its services. This is consumer fraud at its worst.”
Key Accusations in the Lawsuit
- False Promises About Storage & Viability: CBR assured parents their baby’s cord blood and tissue would remain viable for future medical use but allegedly failed to maintain strict temperature controls during shipping—potentially rendering the samples unusable.
- Disparaging Public Banking Options: CBR portrayed public cord blood banking as unreliable to steer parents into costly private banking without fully informing them of less expensive, viable alternatives.
- Undisclosed Kickbacks to Doctors: The company allegedly paid financial incentives to OB-GYNs and other medical providers—up to $700 per sample, as well as free lunches and gift cards—to promote its serviceswithout disclosing these incentives to parents.
- Consumer Fraud Violations: CBR’s practices violated the Arizona Consumer Fraud Act, according to the complaint.
Legal Action & Next Steps
The Attorney General’s Office is seeking:
- Restitution for affected consumers.
- Civil penalties of up to $10,000 per violation.
- A court injunction to stop CBR from engaging in deceptive practices in Arizona.
- Disgorgement of all profits obtained through unlawful conduct.
Consumer Action
Attorney General Mayes urges any Arizonan who used CBR’s services and believes they were misled to file a consumer complaint at www.azag.gov/consumer.
“As long as I am Attorney General, companies that prey on parents during one of the most important moments of their lives will be held accountable,” Mayes said. “We will fight to ensure CBR answers for its actions and that Arizonans get the honesty and transparency they deserve.”
