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WeissLaw LLP: GDS Holdings Limited is the Subject of a Legal Investigation

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WeissLaw LLP: GDS Holdings Limited is the Subject of a Legal Investigation

PR Newswire

NEW YORK, Aug. 16, 2018 /PRNewswire/ -- WeissLaw LLP, a national class action, shareholder rights law firm with offices in New York, Los Angeles, and Atlanta, announces an investigation of GDS Holdings Limited (the "Company" or "GDS") (NASDAQ:GDS), its Board of Directors, and certain Company officers, for among other things, possible breaches of fiduciary duty and violations of federal securities laws.

On July 31, 2018, following a report published by Blue Orca Capital, GDS shares nosedived $15.48, or 41.15%, to close at $21.83, its lowest closing price since the beginning of the year. 

According to Blue Orca Capital, GDS has been engaging in a scheme to "enrich insiders by acquiring data centers . . . which are not nearly as valuable as the Company claims."  It further alleges that GDS has illegally funneled hundreds of millions of dollars of recklessly borrowed money to insiders.  Blue Orca Capital reports that, through its investigation, it has found evidence which "indicates that GDS is inflating the size of its service area [and] its utilization rates."  Blue Orca Capital grimly concluded that, based on its findings, GDS's growth is "largely illusory," and the Company could "easily be worth $0.00."

WeissLaw is investigating the charges made against GDS and its Board of Directors.  If you own GDS shares and wish to discuss this investigation or have any questions concerning this notice or your rights or interests, please contact Joshua Rubin of WeissLaw LLP at (888)593-4771, or by e-mail at stockinfo@weisslawllp.com

WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties. We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases.  If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at stockinfo@weisslawllp.com or fill out the form on our website, http://www.weisslawllp.com/gds-holdings-limited/

 

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SOURCE WeissLaw LLP

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