Cryo-Cell Class Action Settlement

A class action lawsuit was filed against Cryo-Cell 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.