Robbins LLP is Investigating the Allegations that the Board of Global Cord Blood Corporation (CO) Engaged in Self-Serving and Conflicted Transactions
Robbins LLP informs investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Global Cord Blood Corporation (NYSE: CO) securities between June 4, 2019 and May 3, 2022. Global Cord Blood provides umbilical cord blood storage and ancillary services in the in the Beijing Municipality, Guangdong Province, and Zhejiang Province of the People’s Republic of China.
The Allegations
According to the complaint, during the class period, Defendants failed to disclose that: (i) 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; (ii) 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; (iii) 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 (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times. As a result, the Company’s stock has declined, harming investors.
What Now: You may be eligible to participate in the class action against Global Cord Blood Corporation Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by June 24, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
