Global Cord Blood Corp. Faces Investor Lawsuit Over Alleged Fraudulent Buyout

Investors in Global Cord Blood Corp. Are pursuing legal action against Golden Meditech Holdings Ltd., the former parent company of Global Cord, alleging participation in a scheme to defraud shareholders. The lawsuit centers around a failed buyout of Texas-based biotech firm Cellenkos Inc., which investors claim was a “sham transaction” designed to conceal past financial transfers.

Background on Global Cord Blood Corp. And Golden Meditech

Global Cord Blood Corp., originally known as China Cord Blood Corporation, provides umbilical cord blood storage and related services in China. Golden Meditech Holdings Ltd. (GMHL), a Cayman Islands-based medical device and hospital management company, was formerly the largest shareholder of Global Cord Blood Corp.

The Alleged Fraudulent Buyout of Cellenkos

The core of the lawsuit revolves around the acquisition of Cellenkos Inc., a Houston-based biotechnology company specializing in umbilical cord blood-derived stem cell therapies. Investors allege that Golden Meditech orchestrated the acquisition without shareholder approval, resulting in undisclosed payments to Golden Meditech. The deal involved a purported $664 million cash consideration, which plaintiffs claim was a deliberate attempt to hide previous monetary transfers from Global Cord.

Legal Proceedings and Court Rulings

On April 22, 2024, a class action complaint was filed against Global Cord in the Southern District of New York, alleging violations of federal securities laws related to the Cellenkos acquisition. Judge P. Kevin Castel ruled that investors had sufficiently pleaded that Golden Meditech participated in the scheme to defraud shareholders. As of November 13, 2025, the case remains open.

Ongoing Investigation

Hach Rose Schirripa & Cheverie, LLP is currently conducting an investigation into potential breaches of fiduciary duty and other legal violations by officers and directors of Global Cord Blood Corporation. The firm encourages individuals who purchased Global Cord common stock between June 4, 2019, and May 3, 2022, and experienced significant losses to contact them.