A New York federal judge has partially dismissed a securities class action lawsuit against Global Cord Blood Corporation, alleging a scheme to divert hundreds of millions of dollars from the company to its former parent company’s founder and related businesses, according to a ruling delivered February 18, 2026. The lawsuit, filed in the U.S. District Court for the Southern District of New York, accuses Global Cord and several individuals of securities fraud.
The class action, brought by investors who purchased Global Cord securities between June 4, 2019, and May 3, 2022, alleges that the company improperly transferred funds to Golden Meditech Holdings Limited and its founder, Yuen Kam. Golden Meditech, a Cayman Islands-based medical device and hospital management company, was Global Cord’s largest shareholder until January 2018. Kam took Golden Meditech private in October 2020, after it was listed on the Hong Kong Stock Exchange.
Bragar Eagel & Squire, P.C., the firm representing the plaintiffs, filed the lawsuit on April 22, 2024, and set a lead plaintiff deadline of June 21, 2024. The firm argues that Global Cord rejected multiple “going private” offers while simultaneously facilitating the transfer of funds to entities controlled by Kam.
The specifics of which claims were trimmed by the judge were not immediately available, but the ruling indicates that not all aspects of the investors’ allegations will proceed to trial. Law360 reported the judge’s decision, signaling ongoing legal scrutiny of Global Cord’s financial practices.
Global Cord Blood Corporation provides umbilical cord blood storage and ancillary services in Beijing Municipality, Guangdong Province, and Zhejiang Province of the People’s Republic of China. The company has been the subject of investor scrutiny as it navigated potential acquisition offers and maintained its financial relationship with Golden Meditech. A separate case, MW Gestion v. Global Cord Blood Corporation et al, is also underway in the same court.
Rosen Law Firm has also announced an investigation into potential securities claims on behalf of Global Cord shareholders, further indicating continued legal challenges for the company. The firm encourages investors to inquire about the securities class action investigation.
