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Investor Alert: Kaplan Fox Announces Investigation Of GDS Holdings Limited

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Investor Alert: Kaplan Fox Announces Investigation Of GDS Holdings Limited

PR Newswire

NEW YORK, Aug. 1, 2018 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating GDS Holdings Limited ("GDS" or the "Company") (NASDAQ:GDS) concerning potential securities law violations.  Investors who purchased GDS American Depositary Shares, or "ADSs" that trade under the symbol GDS may be affected.

On July 31, 2018, Blue Orca Capital issued a report alleging, among other things, as follows:

"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.  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."

Additionally, the July 31 Blue Orca Capital report said that it had "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."

Following this news, GDS's American Depositary Shares plummeted by $12.92 per ADS, more than 37%, to close at $21.83 per ADS on July 31, 2018.

If you are an investor in GDS and would like to discuss our investigation, please contact us by emailing jcampisi@kaplanfox.com or by calling 800-290-1952.

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

Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com.  If you have any questions about this Notice, the action, your rights, or

Jeffrey P. Campisi
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714
E-mail: jcampisi@kaplanfox.com

Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California  94104
(415) 772-4700
Fax:  (415) 772-4707
E-mail: lking@kaplanfox.com

 

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SOURCE Kaplan Fox & Kilsheimer LLP

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