The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of GDS Holdings Limited (GDS) Investors

The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired GDS Holdings Limited (“GDS” or the “Company”) (NASDAQ: GDS) securities between April 12, 2021 and April 3, 2023, inclusive (the “Class Period”). GDS investors have until August 21, 2023 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

On April 4, 2023, GDS disclosed that its Chief Executive Officer, William Wei Huang, had entered into pre-paid forward sale contract transactions that may trigger “actual, potential or alleged breaches or early termination of other contracts or agreements” and could potentially “have implications for the purposes of China’s national security review regime and anti-monopoly merger filing requirements.” GDS also warned that “[the] occurrence of any of the foregoing may have a material and adverse effect on [its] business development, financial condition and future prospects.”

On this news, GDS’s stock price fell $0.74, or 4%, to close at $17.80 per ADS on April 4, 2023, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Defendant Huang had engaged in undisclosed pre-paid forward sale contract transactions as early as May 2020; (2) this presented a risk of Defendant Huang’s ownership going below 5% of the Company’s outstanding shares; (3) if Huang’s ownership dipped below 5%, it would result in a change of control of the Company which, as the Company admitted, could result in disastrous consequences; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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If you purchased GDS securities during the Class Period, you may move the Court no later than August 21, 2023 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased GDS securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230626333863/en/

The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of GDS Holdings Limited (GDS) Investors