Rosen Law Firm Files Class Action Lawsuit Against Global Cord Blood Corporation

Rosen Law Firm files class action lawsuit against Global Cord Blood Corporation, alleging misappropriation of funds and misleading statements to investors. Encourages affected investors to join the litigation before the June 24, 2024 deadline.

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Rizwan Shah
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Rosen Law Firm Files Class Action Lawsuit Against Global Cord Blood Corporation

Rosen Law Firm Files Class Action Lawsuit Against Global Cord Blood Corporation

Rosen Law Firm, a global investor rights law firm, has filed a class action lawsuit against Global Cord Blood Corporation (NYSE: CO, OTC: CORBF) on behalf of purchasers of the company's securities between June 4, 2019 and May 3, 2022. The lawsuit alleges that Global Cord made false and misleading statements while engaging in a capital allocation strategy that favored insiders and related parties over shareholders.

According to the complaint, Global Cord employed a capital allocation strategy designed to reserve funds for insiders and related parties rather than for the benefit of shareholders. The defendants are accused of rejecting multiple going-private offers and entering into an agreement to acquire Cellenkos Inc. for over $1 billion, including in Global Cord shares, as self-serving attempts to divert company funds to corporate insiders and related parties.

The lawsuit claims that the 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 of hundreds of millions of dollars from the company by defendant Yuen Kam and his entities. As a result, Global Cord's public statements were allegedly materially false and misleading at all relevant times.

Why this matters: The class action lawsuit against Global Cord Blood Corporation highlights the importance of transparency and proper disclosure in corporate governance. The allegations of misappropriation of funds and self-serving actions by insiders raise concerns about the protection of shareholder interests and the integrity of the company's financial statements.

Rosen Law Firm encourages investors who purchased Global Cord Blood Corporation securities during the class period and suffered losses in excess of $100,000 to join the litigation before the June 24, 2024 deadline to potentially share in any future recovery. The law firm, known for its expertise and success in securities class actions and shareholder derivative litigation, has achieved notable settlements in the past, including the largest ever against a Chinese company.

Key Takeaways

  • Rosen Law Firm filed a class action lawsuit against Global Cord Blood Corp.
  • Lawsuit alleges Global Cord made false statements, favored insiders over shareholders.
  • Global Cord accused of misappropriating hundreds of millions, misleading investors.
  • Lawsuit seeks to recover losses for investors who purchased securities during class period.
  • Rosen Law Firm known for expertise in securities class actions, past notable settlements.