Texas AG Sues Cord Blood Banking Company

AUSTIN (KXAN) — Texas Attorney General Ken Paxton filed a legal action against a company that retains umbilical cord blood.cord bloodfor supposedly misleading business practices.

In a Friday morning press releasePaxton mentioned that his office filed a lawsuit against CBR Systems, which is part of CooperSurgical. Paxton alleged that the company "takes advantage of new parents' affection" by using "deceptive, emotional selling tactics."

"CBR takes advantage of new parents' affection for their children by charging them, typically at a high cost, to store their newborn's umbilical cord stem cells. However, these services are mostly ineffective for the purpose they claim to offer," stated Paxton's press release.

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Fact-check

Paxton's statement was the initial one released by the Texas Office of the Attorney General (OAG) on Friday. It did not include a copy of the legal action, nor did it specify when or where the case was submitted.

affiliateKXANInquired with the Office of the Attorney General for a copy of its legal action on two occasions on Friday, and conducted an online search of court records for federal courts and multiple Texas counties. Should we obtain or discover it, we will share an update regarding the specific claims outlined.

KXAN has also requested the company's response to Paxton's statement. We will update this report once a reply is obtained.

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What is cord blood?

Throughout a pregnancy, the umbilical cord transports nourishment and oxygenated blood from the placenta to the growing fetus. This blood, known as cord blood, is high in stem cells, which play a role in forming various parts of the body.

Stem cells are also being utilized to address severe health issues. For instance, Dell Children’s Medical Center recently reported that they successfully performed the first pediatric bone marrow transplant in Central Texas.

"Stem cells from cord blood can be utilized in a stem cell transplant to assist in restoring the immune system for specific cancers, blood conditions, and immune-related diseases," states CBR's website.

After a baby is born and the umbilical cord is severed, the remaining cord blood has three possible fates: it can be discarded, given to a donation program, or preserved. The final choice is the only one that involves a cost, and this option is promoted to expectant parents in hospitals located in the Austin region.

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The Code of ethics from the American Medical Associationsuggests that healthcare professionals should promote donations when there is a "low likelihood of a predisposition to a condition that can be treated with umbilical cord blood cells." Paxton, who has previously disagreed with the AMA on other medical matters, referenced this in his statement.

What CBR claims banking services provide to parents

The service's main selling point is reassurance: "If unused blood could save your child, wouldn't you want it to be available later?"

Although adult stem cells can also be donated, they need to be compatible with the person receiving them. This usually indicates that family members are the best choice for someone in need of stem cells.

Besides your baby, other family members might also gain from having access to preserved newborn stem cells. These cells could potentially be utilized by brothers, sisters, and parents as well," states CBR's website. "Your baby is always a 100% match for their own newborn stem cells, while full siblings have a 75% chance of being at least a partial genetic match.

Its promotional materials also imply that upcoming developments in medicine might more effectively utilize stored umbilical cord blood.

The company’s websiteprovides annual storage for $960, 18-year storage for $3,745, and lifetime storage for $5,745, all following a $750 discount. Annual fees may experience "occasional changes." It also provides a combined blood and tissue storage option at increased costs.

The site also mentions that over 700 families have utilized the service.

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Paxton claims the company exploited parents

Paxton stated in his statement that it was "disgraceful and unlawful" to "exploit parents' affection for their children."

The actions unfairly focused on new parents and were meant to exploit a parent's natural desire to protect their children in order to gain money quickly," he stated. "That is not acceptable, and I am taking legal action to stop this deception right away.

The statement indicates that the likelihood of a child utilizing their own umbilical cord blood is almost nonexistent.

That number seems to remain valid;a 2008 studyestimated a 1 in 5,000 chance, or merely 0.002%. This is comparable to the likelihood of asteroid 2007 KE4 colliding with Earth in about three years, which is projected to release energy equivalent to 1.1 megatons of TNT.

It is much more probable that stem cells would come from a donor. The OAG's statement also criticizes the company for frightening parents into believing a match may not be available. According to the OAG, this "diverts thousands of cord-blood units from public banks."

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