GDS Investors Have Opportunity to Lead GDS Holdings Limited Securities Fraud Lawsuit
BENSALEM, Pa., July 11, 2023 /PRNewswire/ -- Law Offices of Howard G. Smith announces that investors with substantial losses have opportunity to lead the securities fraud class action lawsuit against GDS Holdings Limited ("GDS" or the "Company") (NASDAQ: GDS).
Class Period: April 12, 2021 – April 3, 2023
Lead Plaintiff Deadline: August 21, 2023
Investors suffering losses on their GDS investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to [email protected].
On April 4, 2023, GDS disclosed that its Chief Executive Officer, William Wei Huang, 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 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."
On this news, GDS's stock price fell $0.74, or 4%, to close at $17.80 per ADS on April 4, 2023, thereby injuring investors.
The complaint filed alleges that, throughout the Class Period, Defendants failed to disclose to investors that: (1) Defendant Huang had engaged in undisclosed pre-paid forward sale contract transactions as early as May 2020; (2) this presented a risk of Defendant Huang's ownership going below 5% of the Company's outstanding shares; (3) 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 (4) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to [email protected], or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
[email protected]
www.howardsmithlaw.com
SOURCE Law Offices of Howard G. Smith
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