Twersky Law Group, a highly regarded and reputable law firm based in New York, wishes to inform investors about a significant development in the form of a class action lawsuit against UP GDS Holdings Limited (“GDS” or “the Company) (NASDAQ: GDS) and certain officers of the company. This lawsuit has been filed on behalf of all individuals and entities that purchased or otherwise acquired GDS securities from April 12, 2021, through April 3, 2023 (the “Class Period”). Investors who acquired GDS securities during this defined timeframe are strongly encouraged to participate in this case by contacting atara@twerskylawgroup.com. The deadline to file a motion for appointment of lead plaintiff is August 21, 2023.
The fundamental objective of this class action lawsuit is to recover for the benefit of investors who purchased GDS securities during the Class Period, the losses they sustained as a consequence of the misleading statements made by Defendants in violation of the federal securities laws.
ALLEGATIONS TOWARDS GDS HOLDINGS LIMITED
According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose, among other things, 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 Huangs ownership going below 5% of the Company’s outstanding shares; (3) if Huangs 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 statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages, and the lawsuit is directed towards a remedy for those negatively affected.
ABOUT GDS HOLDINGS LIMITED
What does GDS Holdings do?
- GDS Holdings Ltd. is a company that specializes in providing data center solutions in China. It offers colocation, managed hosting, and value-added services to various businesses and organizations. GDS operates large-scale carrier-neutral data centers in key economic hubs in China, including Beijing, Shanghai, Shenzhen, Guangzhou, and Chengdu.
- In 2004, GDS made a strategic shift towards data center services and began developing its own data center facilities. The company recognized the growing demand for data center solutions in China, driven by the rapid expansion of the internet, e-commerce, and cloud computing industries.
- In 2013, GDS Holdings received a significant investment from global investment firm KKR, which provided the company with capital to expand its data center footprint and enhance its service offerings. This investment helped GDS accelerate its growth and strengthen its position in the Chinese data center market.
- In 2016, GDS Holdings completed its initial public offering (IPO) on the NASDAQ Stock Market under the ticker symbol “GDS.” The IPO further fueled the company’s expansion plans and provided access to additional capital for future development.
Who are the customers of GDS Holdings?
- GDS Holdings serves a diverse range of customers across various industries. Its client base includes financial institutions, internet and cloud service providers, telecommunications carriers, IT service providers, and other enterprises with demanding data center requirements. Notable customers of GDS Holdings have included leading technology companies, financial institutions, and cloud service providers in China.
Who owns GDS Holdings?
- William Wei Huang is the company’s founder, chairman of the board of directors and, since 2002, has served as our chief executive officer. As such, he owns a significant stake in the company.
- Several institutional investors, such as Capital Research and Management Company and Hillhouse Capital, also held substantial ownership positions.
JOIN THIS CASE
It is important to note that a class action lawsuit has already been filed in connection with these allegations. Therefore, for those individuals who suffered financial losses in their investments in GDS during the Class Period, there is a limited opportunity to seek appointment as a lead plaintiff. This process entails requesting the Court to designate them as the primary representative on behalf of the entire class. The deadline for submitting such a request is August 21, 2023. It is important to emphasize that while becoming a lead plaintiff can offer certain advantages, participation in the recovery process and the potential for financial compensation does not mandate serving as a lead plaintiff.
Twersky Law Group is a distinguished legal firm renowned for its attorneys expertise in handling securities fraud class actions and shareholder derivative suits who have a long-standing track record of successfully recovering significant sums of money for investors nationwide. With an unwavering commitment to seeking justice for their clients, the firm’s attorneys are resolute in pursuing fair compensation on behalf of those affected by alleged securities law violations, such as in this current case. As with any legal matter, it is essential to understand that this announcement constitutes attorney advertising. Past case outcomes and results achieved do not guarantee similar outcomes in this particular case.
Investors who believe they may qualify as potential class members in the class action lawsuit against GDS are strongly encouraged to reach out directly to the firm for further information and assistance. The knowledgeable legal professionals at Twersky Law Group stand ready to provide guidance and support to investors seeking to protect their rights and pursue the recovery they deserve.
ABOUT US
For more information as well as to join this case please contact Atara Twersky, Esq. at atara@twerskylawgroup.com. Atara is Principal at Twersky Law Group and of counsel at AF&T Law Firm where she is director of Investor Services. Atara focuses her practice on assisting her clients with increasing their investment portfolio recoveries and ensuring that their portfolios remain healthy and robust. For more information on shareholder recoveries, listen to Atara ’s Pension and Investments Podcast with notable guests in the pension fund Industry that discusses various matters relating to investment portfolios. For more information on Atara and her legal work pertaining to shareholder protection click here.
