The
Schall Law Firm, a national shareholder rights litigation firm,
announces that it is investigating claims on behalf of investors of GDS
Holdings Limited (“GDS” or “the Company”) (NASDAQ: GDS)
for violations of §§10(b) and 20(a) of the Securities Exchange Act of
1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and
Exchange Commission.
The investigation focuses on whether the Company issued false and/or
misleading statements and/or failed to disclose information pertinent to
investors. Activist investment firm Blue Orca Capital published a report
on July 31, 2018, detailing its research on GDS, which indicates that
the company “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.” Blue Orca Capital also alleges 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.” Based on the
Blue Orca Capital report, shares of GDS fell sharply during intraday
trading on July 31, 2018.
If you are a shareholder who suffered a loss, click
here to participate.
We also encourage you to contact Brian Schall, or Sherin Mahdavian, of
the Schall Law Firm, 1880 Century Park East, Suite 404, Los Angeles, CA
90067, at 424-303-1964, to discuss your rights free of charge. You can
also reach us through the firm’s website at www.schallfirm.com,
or by email at brian@schallfirm.com.
The class in this case has not yet been certified, and until
certification occurs, you are not represented by an attorney. If you
choose to take no action, you can remain an absent class member.
The Schall Law Firm represents investors around the world and
specializes in securities class action lawsuits and shareholder rights
litigation.
This press release may be considered Attorney Advertising in some
jurisdictions under the applicable law and rules of ethics.
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