Cordlife faces civil claims of at least $5.45 million over improperly stored cord blood
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Cordlife said in its filing that the claims totalled at least $5.45 million, and that it is seeking advice on the next steps to take.
PHOTO: ST FILE
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SINGAPORE – Private cord blood bank Cordlife is facing claims of at least $5.45 million from parents who had stored cord blood with the bank but were later informed that the blood had been damaged or was at high risk of damage.
In a late-night bourse filing on Dec 2, Cordlife Group said that it was notified on Dec 1 of the filing of a civil claim to the High Court.
The claim was by an individual representing a group of claimants who had stored 109 cord blood units (CBUs) with Cordlife.
The blood bank noted that this was the same group of claimants who issued a letter of demand to Cordlife
According to the latest bourse filing, the claimants asked Cordlife to 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.
They also sought damages at a market value of $50,000 for each damaged unit, or any other amount determined by the court, as well as reimbursement of expenses rendered futile, or for the court to order an assessment of damages.
Cordlife said in its filing that the claims totalled at least $5.45 million, and that it is seeking advice on the next steps to take.
Nonetheless, it pointed out that the claims relate only to Cordlife’s operations in Singapore, and that the group remains fully operational in other markets.
Cordlife’s board is assessing the impact on its financial performance for the current financial year, which ends on Dec 31. The company said that if Cordlife is ordered to pay the claims, its financial position will be negatively impacted.
In two other Dec 2 bourse filings, Cordlife announced the appointment of Mr Wu Gang, 48, as its non-independent non-executive chairman, effective from Dec 2. He was concurrently appointed as a member of the company’s nominating committee.
Mr Wu, who resides in China, currently holds eight positions. His most recent appointments are vice-chairman and executive president of Sanpower Group, and board chairman of Dendreon Pharmaceuticals.
He is also a director at Cordlife’s substantial shareholder Nanjing Xinjiekou Department Store, which is headquartered in China.
Cordlife said its board recognised that the company is navigating operational challenges, and that “effective and steady leadership is essential at this juncture”. With Mr Wu’s experience in multiple chairmanships and directorships across the retail, healthcare and commercial management sectors, Cordlife believes he can “steward the company towards stability and future growth”.
Mr Wu’s appointment comes about a month after the resignation of Mr Zhai Lingyun
Mr Zhai resigned less than five months into the role, and the resignation took effect from Nov 5.
Separately, Cordlife confirmed in a Dec 1 bourse filing that it had received a notice of regulatory action on Nov 26 from its regulator, the Ministry of Health (MOH).
Cordlife had previously faced a possible one-year suspension by MOH due to “significant lapses” discovered during its midpoint audit of Cordlife in July.
MOH instead issued the notice of regulatory action to stop Cordlife from collecting, testing, processing and/or storing new cord blood with immediate effect, although the company had voluntarily stopped these processes since Sept 30.
Cordlife said based on this notice, the Director-General of Health has decided to modify the conditions of the company’s licence. The company, together with its professional advisers and technical team, is reviewing the notice, and seeking advice on its next steps.
According to Cordlife, MOH said that the additional conditions will remain in force until the company consistently meets the regulatory requirements for cord blood banking services, even if its licence is renewed for another year in January 2026.
MOH also reiterated its earlier directions to Cordlife to replace its current clinical governance officer and review all lab records of about 160 CBUs collected since January, when Cordlife temporarily resumed operations.
The ministry said it will continue to closely supervise Cordlife’s rectification of its various lapses, and will not hesitate to take further regulatory action if further non-compliances are found.
