Cordlife hit with demand letter over alleged negligence

The client's claim is between $60,000 and $250,000.

Cordlife has received a letter of demand from one of its clients for breach of service agreement and duty of care in negligence.

In a bourse filing, Cordlife stated that the client's claim is between $60,000 and $250,000.

The company has sought legal advice on the letter of demand and disagrees with the client's contention that "the company is precluded from relying on various clauses of the client’s contract."

Cordlife said it would require the client to prove the basis for the amount claimed.

Meanwhile, the company also reported receiving a notice of claim in February from another client.

The client is claiming damages not exceeding $20,000 over their child's cord blood unit stored in a tank exposed to suboptimal storage temperatures.