Pomerantz Law Firm Announces the Filing of a Class Action against GDS Holdings Limited and Certain Officers – GDS
NEW YORK, Sept. 26, 2018 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against GDS Holdings Limited (“GDS” or the “Company”) (NASDAQ: GDS) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and index under 18-cv-08810, is on behalf of a class consisting of all persons other than Defendants who purchased or otherwise acquired GDS securities between November 2, 2016 and July 31, 2018, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased GDS securities between November 2, 2016, and July 31,2018, both dates inclusive, you have until October 1, 2018, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
GDS purports to be a leading developer and operator of high-performance data centers in China. The Company is headquartered in Shanghai, China.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose that: (i) GDS had assumed significant levels of debt in order to enrich insiders by acquiring data centers from related parties; (ii) GDS had overstated the value of a number of its data centers; (iii) GDS was inflating the size of its service area, utilization rates, reported revenues, and EBITDA; and (iv) as a result, GDS’s public statements were materially false and misleading at all relevant times.
On July 31, 2018, Blue Orca Capital (“Blue Orca”) published a report alleging, inter alia, 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.” The Blue Orca report further asserted that “GDS is inflating the size of its service area, its utilization rates and therefore its reported revenues and EBITDA.”
On this news, GDS’s ADS price fell $13.42 per share, or over 38%, to close at $21.83 per share on July 31, 2018.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.