Cordlife Group is currently facing civil claims of at least S$5.45 million (approximately US$4.2 million) from clients after reports emerged of improper storage of their cord blood units (CBUs).
On 2 December 2024, the company announced via a Singapore Exchange (SGX) filing that an individual acting on behalf of a group of claimants had initiated a lawsuit in the High Court. This group stored a total of 109 CBUs with Cordlife, which reportedly were placed in “Damaged” and “High Risk” tanks.
Background of the Claims
The claimants had previously issued letters of demand on 28 March 2024, alleging loss and damage due to Cordlife’s negligence. They are seeking compensation set at the market value of S$50,000 for each damaged unit. Alternatively, they are requesting reimbursement for the expenses incurred as a result of the company’s breach of contract.
Regulatory Action by Ministry of Health
In a significant development, the Ministry of Health (MOH) suspended Cordlife from collecting, testing, and storing new CBUs as of 26 November 2024. This decision followed investigations which revealed the company’s failure to maintain optimal storage temperatures for CBUs.
Cordlife’s Response and Financial Implications
Cordlife stated it is currently seeking advice on how to proceed and plans to provide updates soon. The company acknowledges that if required to pay the claims, it may face a negative impact on its financial performance for FY2025, which ends on 31 December 2025.
Leadership Changes
In tandem with these challenges, Cordlife announced the appointment of Wu Gang as its non-independent non-executive chairman. With multiple roles across various sectors, including vice chairman of Sanpower Group, Wu is expected to guide the company through its operational hurdles.
As the board seeks stability in these turbulent times, they emphasised the importance of effective leadership to navigate the current challenges.