The American sperm bank being sued by a Port Hope couple who alleges the sperm donor for their 7-year-old suffers from schizophrenia is calling the suit “baseless,” citing the fact the child is healthy.

In its statement Wednesday, Xytex Corporation does not deny that the donor may have had schizophrenia, but states that it was made clear to the couple during the process that a donor’s medical history cannot be verified.

Xytex said in a press release that it has filed an “answer” to the lawsuit, known in Canada as a statement of defence. Quoting from the statement filed in an Atlanta, Ga., court, it says Xytex “followed industry standards, including interviews with the donor regarding his health and a standard medical examination. The donor reported a good health history and stated in his application that he had no physical or mental impairments.”

It states in the release that the company told the couple, Angela Collins and Margaret Elizabeth Hanson, throughout the selection process that the “medical and social history” provided by the donor “cannot be verified for accuracy.”

The lawyer for the Port Hope couple responded to the Star Wednesday, pointing out that while their child is healthy now, “premonitory signs of psychosis do not show up until after the age of 12.”

The complaint filed by the couple in the Georgia court alleges that Xytex “advertised, promoted, recommended its semen as having come from medically qualified donors who made up 5% of the applicant pool.”

It alleges that donor 9623, Chris Aggeles, was promoted by an employee of Xytex as “the best donor they had.” The lawsuit alleges that the donor has 36 offspring.

The couple’s San Francisco-based lawyer, Nancy Hersh, said after reading the statement of defence by Xytex, “It is not very informative. Essentially, Xytex admits that Aggeles is donor 9623 and denies any liability or responsibility for failing to do anything more than take his word about his alleged attributes and accomplishments.”

The lawsuit alleges that Collins and Hanson were told the donor had an IQ of 160, was a PhD candidate in neuroscience engineering, had a master’s degree in artificial intelligence and was “mature beyond his years.”

The couple further claims they learned only years after their child was born that the donor has schizophrenia, a “genetic and hereditary” disorder, and furthermore was a college dropout and an “ex-felon” who had been arrested for burglary. The complaint also alleges that photos provided of him had been “doctored.”

The well-publicized case has raised concerns about how the sperm-donor industry is regulated. Many Canadians seeking donor sperm must turn to U.S. sources because Canadian law makes it illegal to pay donors.

In its press release, Xytex states it is “regulated by numerous federal and state agencies and has never had an issue of non-compliance. The company upholds the highest practices and standards in the business and follows a rigorous vetting process that eliminates 99 per cent of potential donors.”