STEVENSON, Md., Sept. 24, 2018 (GLOBE NEWSWIRE) -- The securities litigation law firm of Brower Piven, A Professional Corporation, announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of GDS Holdings Limited (Nasdaq: GDS) (“GDS” or the “Company”) American Depositary Shares (ADSs) during the period between November 2, 2016 and July 31, 2018, inclusive (the “Class Period”). Investors who wish to become proactively involved in the litigation have until October 1, 2018 to seek appointment as lead plaintiff.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in GDS securities during the Class Period. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action.
The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the defendants’ failure to disclose during the Class Period that the Company had overstated its utilization and occupancy rates, that it made acquisitions with related parties at inflated prices, that it used suspect capital and debt raisings despite large off-shore cash reserves, and that it adopted unorthodox accounts receivable and payable practices.
According to the complaint, following a July 31, 2018 report 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, and that unrelated data center operators are selling a substantial amount of empty cabinet space in a building which is supposedly exclusively operated and 94% utilized by GDS, the value of GDS shares declined significantly.
If you have suffered a loss in excess of $100,000 from investment in GDS securities purchased on or after November 2, 2016 and held through the revelation of negative information during and/or at the end of the Class Period and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, without cost or obligation to you, please contact Brower Piven either by email at hoffman@browerpiven.com or by telephone at (410) 415-6616.
Attorneys at Brower Piven have extensive experience in litigating securities and other class action cases and have been advocating for the rights of shareholders since the 1980s. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.