Cordlife served two letters of demand from customers over cord blood units storage
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Cordlife has received two letters of demand relating to prior claims alleging loss and damage from cord blood units storage.
ST PHOTO: AZMI ATHNI
Chloe Lim
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SINGAPORE – Cordlife received two letters of demand on March 28, relating to prior claims alleging loss and damage from cord blood units storage
The clients whose cord blood units are stored with Cordlife fall under two categories. One has units unlikely to be suitable for stem cell transplant purposes, and the other has units stored in tanks identified as falling within the “low risk” or “unaffected” band.
Clients in the first category are claiming damages, which fall under breach of contract and negligence. The aggregate sum claimed by these people falls within the jurisdiction of the General Division of the High Court, which handles claims exceeding $250,000.
Clients in the other category have requested certain warranties and undertakings from the group, as well as compensation for costs, among other things.
Cordlife is seeking legal advice regarding the matters set out in the letters.
At this juncture, the company is unable to determine the exact financial impact of the claims or the exposure that may arise from the matters set out in the letters.
According to Cordlife’s statement, if the group is required to settle the claims in the letters of demand, it will likely result in “a negative impact on the financial position of the group” for the financial year ending Dec 31.
The private cord-blood bank posted a net loss of $6.3 million for its second half ended Dec 31, 2024, compared with a net profit of $1.3 million in the previous corresponding period. This was largely due to the fallout from lapses discovered in the storage of the company’s cord blood units two years ago.
Shares of Cordlife closed unchanged at 14.9 cents on April 1, after the announcement. THE BUSINESS TIMES
