NEW YORK, Aug. 20, 2023 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of GDS Holdings Limited (“GDS” or the “Company”) ( GDS). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether GDS and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On April 4, 2023, GDS filed with the U.S. Securities and Exchange Commission its Annual Report on Form 20-F for 2022. In the 2022 Annual Report, GDS admitted that Company founder and Chief Executive Officer William Wei Huang had entered into previously undisclosed pre-paid forward sale contract transactions, which would have significant consequences if Huang’s share ownership fell below 5%—an outcome that GDS acknowledged was a possibility if “Huang chooses to settle these transactions by transferring ownership of [his] ordinary shares to the counterparties”. Specifically, the Annual Report stated that “[i]f Mr. Huang’s beneficial ownership in our company falls below 5%, our dual-class share structure will terminate and a change of control would be triggered under certain of our material commercial and loan agreements, and our business development, financial condition and future prospects may be materially and adversely affected.”
On this news, GDS’s stock price fell $1.30 per share, or 7.01%, over the following two trading sessions, closing at $17.24 per share on April 5, 2023.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980
