Cordlife facing $5.45m lawsuit from customers over improperly stored cord blood units

Cord blood bank Cordlife Group is facing civil claims of at least $5.45 million from its customers who were affected by the improper storage of their cord blood units (CBUs).

In a Singapore Exchange (SGX) filing on Tuesday (Dec 2), Cordlife said that it was notified on Monday of the claim.

The lawsuit was filed in High Court and was made by an individual representing a group of claimants who had stored 109 CBUs with Cordlife.

According to the filing, the claimants are the same customers who issued letters of demand to the company alleging loss and damage of the CBUs on Mar 28.

Their CBUs are stored in the "Damaged" and "High Risk" tanks, said Cordlife.

The claimants are seeking damages at a market value of $50,000 for each damaged CBU, or any other amount determined by the court.

Alternatively, they seek a reimbursement of expenses rendered futile by Cordlife's negligence and/or breach of contract, or for the court to order an assessment of damages.

The lawsuit also demands that Cordlife acknowledge and declare that it is liable for the loss and damage arising from its negligence and/or breach of contract in failing to properly store and preserve the CBUs, resulting in irreparable damage.

Cordlife said that it is seeking advice on the next steps, and that the claims are only relevant to its operations in Singapore.

Cordlife stated that its board is currently assessing the impact on its financial performance for the financial year ending on Dec 31. It also added that paying off the claims will result in a negative impact on its financial position.

In two other bourse filings on Dec 2, Cordlife announced the appointment of Wu Gang as its non-independent non-executive chairman with immediate effect. Wu, 48, who resides in China, was also appointed as a member of the company’s nominating committee.

Cordlife stated that Wu holds multiple chairmanships and directorships across various sectors such as retail, healthcare, and commercial management. This includes his roles as vice chairman and executive president of Sanpower Group, and board chairman of Dendreon Pharmaceuticals.

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dana.leong@asiaone.com