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Cryo-Cell Class Action Settlement
2 July 2004
A class action lawsuit was filed against Cryo-Cell (40 page pdf) by Eugene Basch on behalf of stockholders, District Court of Florida, Tampa Division. The suit alleges: that Cryo-Cell issued numerous false financial statements that artificially inflated reported revenues, earnings, and assets. One of these is failure to disclose revenue-sharing agreements with the Safti-Cell storage facility in Arizona where Cryo-Cell sends half of all cord blood collections.
Counsel for both sides have reached an agreement in principle to settle the litigation. The proposed settlement totals $7 million, $4 million from Cryo-Cell's former auditors and $3 million on the company's behalf. Both payments are partially covered by liability insurance. The settlement does not contemplate any admission of wrongdoing by any of the parties.
Counsel for both sides have reached an agreement in principle to settle the litigation. The proposed settlement totals $7 million, $4 million from Cryo-Cell's former auditors and $3 million on the company's behalf. Both payments are partially covered by liability insurance. The settlement does not contemplate any admission of wrongdoing by any of the parties.
Last modified: 05.February 2008
Copyright 2000 - 2008 Frances Verter
Copyright 2000 - 2008 Frances Verter