NEW YORK, Aug. 14, 2018 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, announces that a securities class action lawsuit has been filed on behalf of those who purchased or acquired the securities of GDS Holdings Limited (“GDS” or the “Company”) (NASDAQ: GDS) between November 2, 2016 and July 31, 2018, both dates inclusive (the “Class Period”). The lawsuit seeks to recover GDS shareholders’ investment losses.
If you purchased GDS securities, and/or would like to discuss your legal rights and options, please visit GDS Shareholder Investigation or contact Daniel Sadeh toll free at (877) 779-1414 or dsadeh@bernlieb.com .
According to the lawsuit, throughout the Class Period Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company has overstated its utilization and occupancy rates; (2) it has made acquisitions with related parties at inflated prices; (3) it has used suspect capital and debt raisings despite large off-shore cash reserves; (4) it has adopted unorthodox accounts receivable and payable practices; and (5) as a result of the foregoing, Defendants’ statements about GDS’ business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.
On July 31, 2018, Blue Orca Capital published a reported stating, among other things, that “our research indicates that in reality, 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 “[w]e have also 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. In our opinion, this indicates that GDS is inflating the size of its service area, its utilization rates and therefore its reported revenues and EBITDA.”
On this news, GDS’ stock fell $12.92 per share, or over 37%, from its previous closing price to close at $21.83 per share on July 31, 2018, damaging investors.
If you wish to serve as lead plaintiff, you must move the Court no later than October 1, 2018. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased GDS securities, and/or would like to discuss your legal rights and options, please visit https://www.bernlieb.com/cases/gds-holdings-l...awsuit-74/ or contact Daniel Sadeh toll free at (877) 779-1414 or dsadeh@bernlieb.com .
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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Contact Information Daniel Sadeh Bernstein Liebhard LLP http://www.bernlieb.com (877) 779-1414 dsadeh@bernlieb.com
