A Maricopa County judge has denied CBR Systems, Inc.’s motion to dismiss a consumer fraud lawsuit filed by Arizona Attorney General Kris Mayes. The case, brought earlier this year, accuses the cord blood banking company of deceptive and unfair practices that allegedly targeted families of newborns.
Attorney General Kris Mayes commented on the court’s decision: “We know Arizona parents and families fell victim to the scam of CBR’s cord blood pitch. I’m grateful that the Court denied the defendant’s attempts to dismiss this case. The state will continue to press this case on behalf of Arizonans and consumers throughout the country who were allegedly deceived by CBR.”
According to the complaint, CBR is accused of misleading consumers about how likely it is that stored cord blood would be used for future transplants. Expert estimates cited in the lawsuit suggest these odds range from 1 in 400 to as low as 1 in 200,000 over a child’s lifetime.
The Attorney General’s Office also alleges that CBR misrepresented its transportation process for cord blood samples sent to its Tucson facility. The complaint claims samples were shipped without proper temperature controls or monitoring, which could make them unusable if compromised during transit.
Another allegation states that CBR offered financial incentives—including free lunches, gift cards, and payments up to $700 per sample—to doctors who promoted its services. By recruiting obstetricians and gynecologists—who are trusted by expectant parents—the company allegedly created an impression of medical endorsement without disclosing these physicians received compensation for their promotion.
The complaint further asserts that CBR misled consumers by criticizing public cord blood banking options as inferior or unreliable, encouraging parents to choose more expensive private banking services while not fully informing them about less costly alternatives.
Consumers who believe they have been affected by unfair practices or fraud can file a complaint with the Attorney General’s Office at www.azag.gov/consumer or contact their offices directly for assistance with submitting a complaint form.
A copy of the court order is available online.
