NEW YORK, NY--(Marketwired - Oct 17, 2014) - Pomerantz LLP has filed a class action lawsuit against 21Vianet Group, Inc. ("21Vianet" or the "Company")(
If you are a shareholder who purchased 21Vianet securities during the Class Period, you have until November 11, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com . To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
21Vianet is a Cayman Islands corporation with headquarters in the People's Republic of China ("China"). Founded in 1999, 21Vianet conducts its business primarily in China through its operating subsidiaries as a provider of carrier-neutral Internet data center ("IDC") services.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, and failed to disclose material adverse facts about the Company's business, operations, prospects, performance, and compliance with federal law. Specifically, during the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company overstated the number of cabinets in its Internet data center network; (2) a significant portion of their outsourced data center partnerships have been terminated; (3) the Company misrepresented the financials of its Managed Network Entities; and (4), as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.
In April 2011, the Company went public with an Initial Public Offering (the "IPO") in the United States underwritten by six American Banks. The Company issued 13 million ADS, representing 78 million Class A ordinary shares. The ADSs are registered with the SEC.
On September 10, 2014, research firm Trinity Research Group issued a 121-page report entitled "A Ponzi Scheme of Acquisitions: 21Vianet Group Exposed." Among other things, Trinity Research Group uncovered evidence that the Company misrepresented its IDC network assets and performance, misrepresented the financials of at least some if not all of its acquired companies, and derives substantial revenue from a business unit that is almost universally known as illicit in Chinese IDC circles.
On this news, 21Vianet shares plunged on this news, falling $1.76 per share, or over 8%, on unusually heavy volume from its previous closing price in one day.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com .
CONTACT: Robert S. Willoughby Pomerantz LLP Email Contact
