21Vianet Group Inc (NASDAQ: VNET) Investor Securities Class Action Lawsuit 09/12/2014

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Company Name(s): 
21Vianet Group
Case Name: 
21Vianet Group Shareholder Class Action Lawsuit 09/12/2014
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
NASDAQ: VNET
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
09/12/2014
Class Period Begin: 
08/20/2013
Class Period End: 
08/16/2016
Court of Filing: 
U.S. District Court for the Eastern District of Texas
Deadline To File for Lead: 
11/11/2014
Date Settled: 
05/21/2018
Settlement Amount: 
$9,000,000
Deadline to Participate in Settlement: 
10/31/2018
Summary: 

May 21, 2018 - The court preliminarily approved the settlement.

April 9, 2018 - Parties filed a stipulation of settlement.

September 28, 2017 - The court denied defendants motion to dismiss.

November 14, 2016 - Defendants filed a motion to dismiss.

September 13, 2016 - The lead plaintiff filed an amended complaint on behalf of investors who purchased 21Vianet Group Inc (NASDAQ: VNET) American Depositary Shares (ADS) between August 20, 2013 and August 16, 2016. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between August 20, 2013 and August 16, 2016.

September 21, 2015 - Lead plaintiff and lead counsel were appointed and all cases were consolidated.

November 13, 2014 - All cases were consolidated.

November 12, 2014 - A lead plaintiff motion was filed.

September 12, 2014 - An investor in shares of 21Vianet Group Inc (NASDAQ: VNET) filed a lawsuit in the U.S. District Court for the Eastern District of Texas against 21Vianet Group Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between April 21, 2011 and September 10, 2014.

According to the complaint the plaintiff alleges on behalf of purchasers of 21Vianet Group Inc (NASDAQ: VNET) common shares between April 21, 2011 and September 10, 2014, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that 21Vianet Group Inc misrepresented its true financial performance.

21Vianet Group Inc reported that its annual Total Revenue rose from over $1.02 billion in 2011 to over $1.96 billion in 2013. Shares of 21Vianet Group Inc (NASDAQ: VNET) grew from $8.65 per share to as high as $31.96 per share in July, respectively $31.29 per share in August 2014.

Then on September 10, 2014, a report by Trinity Research Group was published that criticized 21Vianet Group Inc’s business practices. Specifically, the report alleged that 21Vianet Group Inc's Chinese operations are equivalent to a ponzi scheme. According to a Trinity Research September 2014 121-page report, there is “Overwhelming evidence that the company is committing accounting and securities fraud." The report stated that revenues were being overstated and 21Vianet Group Inc will likely be delisted from the NASDAQ market exchange

Shares of 21Vianet Group Inc (NASDAQ: VNET) declined from $28 per share on September 8, 2014, to as low as $14.23 per share during September 10, 2014.

On September 12, 2014, 21Vianet Group Inc (NASDAQ: VNET) shares closed at $19.87 per share.