GDS Holdings Limited (NASDAQ: GDS) Investor Securities Class Action Lawsuit 08/02/2018

If you purchased a significant amount of shares of GDS Holdings Limited (NASDAQ: GDS) between November 2, 2016 and July 31, 2018, and / or if you purchased any NASDAQ: GDS shares prior to November 2016 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: October 1, 2018. NASDAQ: GDS investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
GDS Holdings
Case Name: 
GDS Holdings Shareholder Class Action Lawsuit 08/02/2018
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: GDS
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
08/02/2018
Class Period Begin: 
11/02/2016
Class Period End: 
07/31/2018
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
10/01/2018
Summary: 

An investor in shares of GDS Holdings Limited (NASDAQ: GDS) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by GDS Holdings Limited in connection with certain allegedly false and misleading statements made between November 2, 2016 and July 31, 2018.

According to the complaint the plaintiff alleges on behalf of purchasers of GDS Holdings Limited (NASDAQ: GDS) common shares between November 2, 2016 and July 31, 2018, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between November 2, 2016 and July 31, 2018, the defendants failed to disclose that the Company has overstated its utilization and occupancy rates, that it has made acquisitions with related parties at inflated prices, that it has used suspect capital and debt raisings despite large off-shore cash reserves, that it has adopted unorthodox accounts receivable and payable practices, and that, as a result of the foregoing, Defendant's statements about GDS' business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.

Shanghai based GDS Holdings Limited, together with its subsidiaries, designs, builds, and operates data centers in the People's Republic of China. GDS Holdings Limited reported that its annual Total Revenue rose from over 1.05 billion CNY in 2016 to over 1.61 billion CNY in 2017 and that its Net loss rose from 276.41 million CNY in 2016 to 326.9 million CNY in 2017.

Shares of GDS Holdings Limited (NASDAQ: GDS) grew from $7.01 per share in June 2017 to as high as $46.18 per share on July 12, 2018.

On July 31, 2018,a report was published stating its research indicates 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 report also stated that it discovered 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.”

Shares of GDS Holdings Limited (NASDAQ: GDS) declined to a slow as $18.62 per share on July 31, 2018.