Case Summary

Global Cord Blood

OTC BB: CORBF

Case Details

  • Gestion v. Global Cord Blood Corporation et al.
  • Class Period:June 4, 2019 - May 3, 2022
  • Date Filed:April 22, 2024
  • Jurisdiction:U.S. District Court, Southern District of New York
  • Docket Number: 1:24-cv-03071
  • Lead Plaintiff Deadline: June 24, 2024
Days Left to
Seek Plaintiff
30

Overview

A class action lawsuit has been filed against Global Cord Blood Corporation (“Global Cord” or the “Company”) (OTC BB: CORBF) and certain of the Company’s current and former senior executive officers alleging violations of the Securities Exchange Act of 1934.  The Global Cord lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired Global Cord securities between June 4, 2019 and May 3, 2022, both dates inclusive (the “Class Period”), and investors have until June 24, 2024 to seek appointment as lead plaintiff of the Global Cord class action lawsuit.

Global Cord is a provider of cord blood banking services in China.  The Company and its subsidiaries are principally engaged in the provision of umbilical cord blood storage and ancillary services in the People’s Republic of China.

The lawsuit alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) Global Cord employed a capital allocation strategy designed to reserve funds for Company insiders and related parties rather than for the benefit of Company shareholders; (2) Global Cord’s decisions to reject multiple going private offers and enter into the Transaction were nothing more than self-serving and conflicted attempts by Defendants to divert Company funds to corporate insiders and related parties; (3) Defendants fundamentally misrepresented to investors Global Cord’s approach to capital allocation, strategic investments, acquisitions, and related party transactions as a result of the misappropriation by Defendant Kam and his entities of hundreds of millions of dollars from the Company; and (4) as a result, the Company’s public statements were materially false and misleading at all relevant times.

On April 29, 2022, after the market had closed, in a Form 6-K filed with the U.S. Securities and Exchange Commission, Global Cord announced that the Company had entered into a Material Definitive Agreement to acquire Cellenkos.  On this news, Global Cord’s stock price fell $0.98 per share, or 28.57%, from $3.43 at the close of trading on April 29, 2022, to close at $2.45 per share on May 2, 2022.

On May 5, 2022, Blue Ocean, a wholly owned subsidiary of Nanjing Yingpeng, which is a majority shareholder of the Company, filed a Petition opposing the Transaction in the Grand Court of the Cayman Islands, Financial Services Division. On this news, Global Cord’s stock price fell $0.22 per share, or 9.09%, to close at $2.20 per share on May 5, 2022.

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If you purchased or otherwise acquired Global Cord securities between June 4, 2019, and May 3, 2022, both dates inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the Global Cord lawsuit is June 24, 2024.

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