SHAREHOLDER ALERT - Bronstein, Gewirtz & Grossman, LLC Notifies Investors of Class Action Against GDS Holdings Limited (GDS) and Lead Plaintiff Deadline - October 1, 2018
NEW YORK, Aug. 9, 2018 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against GDS Holdings Limited ("GDS" or the "Company") (NASDAQ: GDS) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired GDS securities between November 2, 2016 and July 31, 2018, inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: www.bgandg.com/gds.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) GDS Holdings overstated its utilization and occupancy rates; (2) GDS Holdings made acquisitions with related parties at inflated prices; (3) GDS Holdings used suspect capital and debt raisings despite large off-shore cash reserves; (4) GDS Holdings adopted unorthodox accounts receivable and payable practices; and (5) as a result, defendants' statements about GDS Holdings' business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.
On July 31, 2018, Blue Orca Capital published an article stating 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. We believe that since becoming a public Company, GDS has borrowed recklessly to siphon off at least RMB 696 million to insiders by inflating the purchase price of undisclosed related party acquisitions." The article continued to say that Blue Orca Capital exposed evidence of "unrelated data center operators selling a substantial amount of empty cabinet space in a building which is supposedly exclusively operated and 94% utilized by GDS." Following this news, GDS stock dropped during intraday trading on July 31, 2018.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm's site: www.bgandg.com/gds or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in GDS you have until October 1, 2018 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | [email protected]
SOURCE Bronstein, Gewirtz & Grossman, LLC
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