• Posted March 26, 2026

Two States Sue Cord Blood Company Over Misleading Claims

Two states are suing a major cord blood storage company, claiming it misled parents about the benefits of saving their newborn’s stem cells.

Texas filed a lawsuit last month against Cord Blood Registry (CBR), and Arizona filed a similar case last year. Officials say the company made misleading claims about the usefulness of these cells in modern medicine.

Cord blood is collected from a newborn’s umbilical cord and stored for possible future use. CBR, based in Tucson, Arizona, stores more than 1 million samples and charges families thousands of dollars upfront, in addition to yearly storage fees.

On its website, the company calls cord blood banking a “once-in-a-lifetime opportunity” with the “potential to treat 80+ conditions."

The lawsuits say those claims are misleading. Modern medicine has limited use for privately stored cord blood, according to the cases, which cite a 2024 investigation by The New York Times.

Officials are asking the company to remove what they call deceptive ads and pay back all of the families who were misled.

“We know that so many families were deceived by this company at a time when they are in their most vulnerable moment,” Arizona Attorney General Kris Mayes told The Times.

Mayes said she was one of those parents. 

She stored her daughter’s cord blood 13 years ago after being told it might one day help save her child’s life.

“I had somebody telling me that there is the possibility of using cord blood to save your baby’s life in the future,” she said.

CBR has pushed back on the Arizona case, saying that its contracts state: "There is no guarantee or assurance regarding success." A judge rejected the company’s request to throw out the case in November.

More than 2 million cord blood samples are stored across the United States, roughly half at CBR’s Tucson facility.

Despite the large numbers, doctors rarely use these samples today. Advances in medicine have made it easier to use adult stem cells instead.

The Times’ investigation found that only 19 transplants using a child’s stored cord blood have been reported since 2010.

There are also concerns about quality. Some stored samples cannot be used because their volume is too low or they have been contaminated. 

Federal inspectors have found signs of bacterial growth at CBR’s facility.

Still, the company promises “the highest quality care and protection” for all samples.

Arizona’s lawsuit claims that CBR “conceals serious contamination concerns and risks from consumers in order to continue reaping storage fees.”

In the wake of reporters’ investigation, California Attorney General Rob Bonta issued a public warning in January of last year, The Times reported.

“As medical advances continue to improve, too many families and doctors continue to be misled about the potential of privately stored cord blood,” Bonta said at the time.

For many parents, the decision is an emotional one.

“You feel like a bad mom if you don’t do it,” Mayes told The Times. 

But “what they are doing is illegal,” she added. “Who knew I’d end up in a position to do something about that.”

More information

The Cleveland Clinic has more on cord blood banking.

SOURCE: The New York Times, March 25, 2026