NEW YORK, June 03, 2024 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired Global Cord Blood Corporation (“Global Cord” or the “Company”) (OTC: CORBF) securities during the period of June 4, 2019 through May 3, 2022, inclusive (“the Class Period”). Investors have until June 24, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
[Click here to learn more about the class action]
On April 29, 2022, Global Cord Blood Corporation announced a transaction through a Form 6-K filing with the U.S. Securities and Exchange Commission (SEC), disclosing its decision to acquire biotechnology company Cellenkos for over $1 billion. The deal included $664 million in cash and 114 million Global Cord shares, effectively diluting existing shareholders by half and significantly reducing the Company’s cash reserves. On this news, the price of Global Cord shares declined by $0.98 per share, or approximately 28.6%, from $3.43 on April 29, 2022 to $2.45 on May 2, 2022.
On May 3, 2022, Blue Ocean Structure Investment Company Limited filed a Petition in the Grand Court of the Cayman Islands, opposing the acquisition of Cellenkos. The Petition raised concerns about Cellenkos’ long-term value, the unjustifiable purchase price, massive shareholder dilution, conflicts of interest, and insufficient shareholder awareness. On this news, the price of Global Cord shares declined by $0.22 per share, or approximately 9.1%, to close at $2.20 per share on May 5, 2022.
The lawsuit alleges that Global Cord 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 to divert company funds to corporate insiders and related parties; and (3) the Company had fundamentally misrepresented to investors Global Cord’s approach to capital allocation, strategic investments, acquisitions, and related party transactions as a result of misappropriation.
If you purchased or otherwise acquired Global Cord securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this CONTACT FORM, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
