Scott+Scott Attorneys at Law LLP (Scott+Scott), a national securities and consumer rights litigation firm, reminds investors that a class action lawsuit has been filed against GDS Holdings, Ltd. (NASDAQ: GDS) (GDS or the Company) and other defendants, related to alleged violations of federal securities laws. If you purchased GDS American Depositary Shares (ADS) or securities between November 2, 2016 and July 31, 2018, you are encouraged to contact a Scott+Scott attorney at (844) 818-6982 for additional information. Investors have until October 1, 2018 to move for lead plaintiff.
GDS designs, builds, and operates data centers in the Peoples Republic of China. The company provides colocation, managed hosting, and managed cloud services.
The lawsuit alleges that defendants made false and/or misleading statements and/or failed to disclose that: (i) GDS Holdings overstated the value of certain data centers it had acquired; (ii) GDS Holdings failed to maintain adequate internal controls; and (iii) as a result of the foregoing, defendants statements about GDSs business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
On July 31, 2018, Blue Orca Capital published a report alleging that GDS is borrowing crippling amounts of debt to enrich insiders by acquiring data centers from undisclosed related parties which are not nearly as valuable as the Company claims. On this news, the Companys share price fell $12.92 “ more than 37% “ to close at $21.83 per share on July 31, 2018.
What You Can Do
If you purchased GDS securities between November 2, 2016 and July 31, 2018, inclusive, or if you have questions about this notice or your legal rights, please contact attorney Joe Pettigrew at (844) 818-6982, or at [email protected].
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.