RADNOR, Pa., Sept. 26, 2018 (GLOBE NEWSWIRE) -- Kaskela Law LLC announces that an investor class action lawsuit has been filed against GDS Holdings Limited ( GDS) (“GDS” or the “Company”) on behalf of purchasers of the Company’s securities between November 2, 2016 and July 31, 2018, inclusive (the “Class Period”).
FINAL DEADLINE NOTICE: Investors who purchased GDS’s securities during the Class Period may, no later than October 1, 2018, seek to be appointed as a lead plaintiff representative of the investor class.
GDS investors who purchased the Company’s securities during the Class Period and suffered financial damages are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (888) 715 – 1740, or [email protected], to discuss this action and their legal rights and options. For additional information or to learn how to participate in this action please visit http://kaskelalaw.com/case/gds-holdings/.
On July 31, 2018, Blue Orca Capital released a report alleging 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.”
Following this news, shares of the Company’s securities declined $12.92 per share, or over 37% in value.
The investor class action complaint alleges that GDS and certain other defendants made a series of false and misleading statements during the Class Period and failed to disclose material adverse to investors concerning the Company’s business, operations, and prospects. Specifically, the defendants failed to disclose that GDS: (1) has overstated its utilization and occupancy rates; (2) has made acquisitions with related parties at inflated prices; (3) has used suspect capital and debt raisings despite large off-shore cash reserves; and (4) has adopted unorthodox accounts receivable and payable practices. The complaint further alleges that, as a result of the foregoing, investors purchased GDS’s securities at artificially inflated prices during the Class Period.
GDS investors who purchased the Company’s securities during the Class Period and suffered financial damages are encouraged to contact Kaskela Law LLC to discuss this action and their legal rights and options. Kaskela Law LLC exclusively represents investors in state and federal courts throughout the country. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.
CONTACT:
KASKELA LAW LLC
D. Seamus Kaskela, Esq.
201 King of Prussia Road
Suite 650
Radnor, PA 19087
(484) 258 – 1585
(888) 715 – 1740
[email protected]
www.kaskelalaw.com
