A lawsuit was filed on behalf of investors in GDS Holdings Limited (NASDAQ: GDS) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 08/11/2023 -- An investor, who purchased NASDAQ: GDS shares, filed a lawsuit against GDS Holdings Limited over alleged violations of Federal Securities Laws.
Investors who purchased shares of GDS Holdings Limited (NASDAQ: GDS) have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
China based GDS Holdings Limited, together with its subsidiaries, develops and operates data centers in the People's Republic of China. On April 4, 2023, GDS Holdings Limited disclosed that its Chief Executive Officer had entered into pre-paid forward sale contract transactions that may trigger "actual, potential or alleged breaches or early termination of other contracts or agreements" and could potentially "have implications for the purposes of China's national security review regime and anti-monopoly merger filing requirements." GDS Holdings Limited also warned that "[the] occurrence of any of the foregoing may have a material and adverse effect on [its] business development, financial condition and future prospects." Shares of GDS Holdings Limited (NASDAQ: GDS) declined from over $30 per share in August 2022 to as low as $.966 per share on May 17, 2023.
The plaintiff claims that between April 12, 2021 and April 3, 2023, defendants d made false and/or misleading statements and/or failed to disclose, among other things, that Defendant Huang had engaged in undisclosed pre-paid forward sale contract transactions as early as May 2020, that this presented a risk of Defendant Huang's ownership going below 5% of the Company's outstanding shares, that if Huang's ownership dipped below 5%, it would result in a change of control of the Company which, as the Company admitted, could result in disastrous consequences, and that as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Those who purchased shares of GDS Holdings Limited (NASDAQ: GDS) have certain options and should contact the Shareholders Foundation.
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