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Block & Leviton Files Securities Class Action Against GDS Holdings (GDS); Investors Are Encouraged to Contact The Firm

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Block & Leviton Files Securities Class Action Against GDS Holdings (GDS); Investors Are Encouraged to Contact The Firm

PR Newswire

BOSTON, Aug. 2, 2018 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a securities litigation firm representing investors nationwide, announces that it has filed a securities fraud class action against GDS Holdings Limited ("GDS" or the "Company") (NASDAQ:GDS) and certain of its officers alleging violations of the federal securities laws and encourages shareholders to contact Block & Leviton ahead of the October 1, 2018 lead plaintiff deadline.

On July 31, 2018, Blue Orca Capital released a report alleging that "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."

Following this report, the Company's shares plunged more than 38%.

The complaint, filed in the United States District Court Southern District of New York, captioned Allison v. GDS Holdings Limited et al., Case No. 1:18-cv-06960, alleges that between November 2, 2016 and July 31, 2018, inclusive (the "Class Period"), Defendants made 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 that: (1) the Company has overstated its utilization and occupancy rates; (2) it has made acquisitions with related parties at inflated prices; (3) it has used suspect capital and debt raisings despite large off-shore cash reserves; (4) it has adopted unorthodox accounts receivable and payable practices; and (5) that, as a result of the foregoing, Defendant's statements about GDS' business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.

If you purchased GDS American Depositary Shares (ADSs) between November 2, 2016 and July 31, 2018 and wish to serve as a lead plaintiff, you must move the Court no later than October 1, 2018.

If you wish to become involved in the litigation or have questions about your legal rights, you are encouraged to contact Attorney John DeFelice at (888) 868-2385, by email at john@blockesq.com or by visiting http://shareholder.law/gds.  

Confidentiality to whistleblowers or others with information relevant to this investigation is assured.

Block & Leviton LLP was recently ranked 4th among securities litigation firms by ISS for recoveries in 2017. The firm represents many of the nations' largest institutional investors and numerous individual investors in securities litigation throughout the country. Indeed, its lawyers have recovered billions of dollars for its clients.

The court in which this case is pending is located at 40 Foley Square, New York, New York 10007.

This notice may constitute attorney advertising.

CONTACT:

BLOCK & LEVITON LLP
John DeFelice
(617) 398-5600 phone
155 Federal Street, Suite 400
Boston, MA 02110
john@blockesq.com

 

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SOURCE Block & Leviton LLP

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