Faruqi & Faruqi, LLP is investigating claims on behalf of Global Cord investors

NEW YORK, May 10, 2024 /PRNewswire/ — Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating and reminds investors of potential claims against Global Cord Blood Corporation (“Global Cord” or the “Company”) (NYSE: CO, OTC: CORBF). June 24, 2024 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company.

James (Josh) Wilson, Faruqi and Faruqi, LLP Securities Litigation Partner, encourages investors who have suffered losses that are greater $75,000 In Global Cord you can contact him directly to discuss your options

If you have suffered losses that go beyond this $75,000 Investing in Global Cord stocks or options in between June 4, 2019 And May 3, 2022 and would like to discuss your legal rights, Call Faruqi & Faruqi Partners Josh Wilson direct at 877-247-4292 or 212-983-9330 (ext. 1310). For more information you can also click here: www.faruqilaw.com/CORBF.

Faruqi & Faruqi is a leading national securities law firm with offices in new York, Pennsylvania, California And Georgia. The company has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.

Throughout the Class Period, defendants made materially false and misleading statements about the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or 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 the Company’s shareholders; (ii) Global Cord’s decisions to reject multiple private offers and enter into the transaction were nothing more than defendants’ self-serving and contradictory attempts to divert corporate funds to corporate insiders and related parties; (iii) Defendants had materially misrepresented to investors Global Cord’s approach to capital allocation, strategic investments, acquisitions and related party transactions as a result of Defendant Kam and his companies’ misappropriation 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.

At April 29, 2022After the market closed, Global Cord announced in a Form 6-K filed with the SEC that it had entered into a material definitive agreement to acquire Cellenkos for more than 20 years 1 billion dollarsincluding $664 million in cash and 114 million Global Cord shares – approximately the same number of shares of the Company that were already outstanding (the “Transaction”). The transaction thus resulted in the dilution of the company’s shareholders by half and the depletion of its considerable cash balance.

On this news, Global Cord’s share price fell $0.98 per share, or 28.57%, of $3.43 at the end of trading on April 29, 2022to close $2.45 per share May 2, 2022.

The transaction was completed within less than three days of the initial notification to Global Cord’s board of directors, without obtaining the shareholder approval expected and required for such a significant transaction. Additionally, the company grossly overstated Cellenkos, for example by assuming that all of its treatments would receive regulatory approval.

Global Cord’s directors approved the transaction for the benefit of themselves and other company insiders and related parties. The court in Cayman Islands has criticized the role of Global Cord’s directors and management in the transaction, stating (among other observations) that “it is impossible at this stage to see any readily understandable commercial rationale for the company, particularly as it is a listed company, enters into and implements an agreement.” which, with such a breathtaking combination of speed and stealth, was of great financial and strategic importance, especially in circumstances in which the company found itself (such as April 29, 2022) under “minority” rather than majority shareholder control.”

At May 3, 2022Blue Ocean Structure Investment Company Limited, a wholly owned subsidiary of Nanjing Yingpeng, filed a petition (the “Petition”) with the Grand Court of China Cayman Islands, Financial Services Division, rejects the transaction. Specifically, the petition alleged that Cellenkos had no discernible long-term value, that the purchase price of the transaction was unjustified, that the transaction would result in massive dilution to Global Cord’s shareholders, and that the close relationship between Global Cord and Cellenkos created a conflict represents interest and that the transaction was approved without sufficient knowledge of the shareholders.

On this news, Global Cord’s share price fell $0.22 per share or 9.09% to close $2.20 per share May 5, 2022.

At September 22, 2022Due to the actions described above and other misconduct of the individual defendants in connection with the transaction, the Grand Court of the Cayman Islands suspended the powers of Global Cord’s directors and appointed joint provisional liquidators for the company.

Following the appointment of the Joint Provisional Liquidators, the NYSE effectively suspended trading in Global Cord’s common stock September 23, 2022.

The court-appointed lead plaintiff is the investor with the greatest financial interest in the relief sought by the class, who is appropriate and typical of the class, and who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may request the Court to serve as lead plaintiff through counsel of their choice, or may elect to do nothing and remain an absent class member. Your ability to share in any recovery will not be affected by the decision to serve as lead plaintiff or not.

Faruqi & Faruqi, LLP also encourages anyone with information about Global Cord’s conduct to contact the company, including whistleblowers, former employees, shareholders and others.

To find out more about the Global Cable Class action lawsuit, go for it www.faruqilaw.com/CORBF or Call Faruqi & Faruqi Partners Josh Wilson direct at 877-247-4292 or 212-983-9330 (ext. 1310).

Lawyer advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar result with respect to future matters. We welcome the opportunity to discuss your individual case. All communications will be treated confidentially.

SOURCE Faruqi & Faruqi, LLP