GDS Holdings Limited Class Action Alert: Wolf Haldenstein Adler Freeman & Herz LLP reminds investors that a securities class action lawsuit has been filed in the United States District Court for the Central District of California against GDS Holdings Limited

LEAD PLAINTIFF DEADLINE IS AUGUST 21, 2023

NEW YORK, July 3, 2023 /PRNewswire/ -- Wolf Haldenstein Adler Freeman & Herz LLP  ("Wolf  Haldenstein") announces that a federal securities class action lawsuit has been filed in the United States District
Court for the Central District of California on behalf of investors who purchased GDS Holdings Limited ("GDS" or the "Company") (NASDAQ: GDS) American Depositary Shares ("ADS's")  between April 12, 2021 and April 3, 2023, inclusive (the "Class Period").

All investors who purchased shares and incurred losses are  advised  to contact the firm immediately at [email protected] or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action or join the case on our website, www.whafh.com.

If you have incurred losses, you may, no later than August 21, 2023, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights.

PLEASE CLICK HERE TO PROVIDE CONTACT INFORMATION

On April 4, 2023, GDS filed its Annual Report on Form 20-F with the SEC and therein revealed certain undisclosed material information about the Company's CEO William Wei Huang, that had been previously omitted.  The disclosure explained that Mr. Huang has entered into and may, in the future, enter into certain transactions from time to time that would reduce Mr. Huang's beneficial ownership of the Company.  Mr. Huang informed the Company that certain variable pre-paid forward sale contract transactions covering more than 42M ordinary shares, which he entered into between May 2020 and June 2022, would expire between March 2023 and December 2023.  The Company disclosed that if Mr. Huang chooses to settle these transactions by transferring the subject shares, his beneficial ownership interest may decrease below 5%, which would trigger an automatic conversion event. 

If the conversion event occurs, all Class B ordinary shares would automatically convert into Class A ordinary shares and the dual structure would be terminated.  This would constitute a change in control for purposes of certain sales agreements and domestic loan facility agreements.  Under the domestic loan agreements, lenders could be given the right to demand early repayment.  The change of control also may have implications for the purposes of China's national security review regime and anti-monopoly merger filing requirements. 

On this news, shares declined from a close of $18.54 per share on April 3, 2023 to a close of $17.24 per share on April 5, 2023.  The stock has traded down in the aftermath of the revelation and now trades at $12.15 per share. 

Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country.  The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego.  The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.

If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at [email protected].

Contact:

Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: [email protected], [email protected] or [email protected]
Tel: (800) 575-0735 or (212) 545-4774

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SOURCE Wolf Haldenstein Adler Freeman & Herz LLP