GDS
Investors that purchased the Company’s securities and have suffered a loss, please fill in transaction information below, or email to info@portnoylaw.com.
There is no cost or obligation associated with submitting your information. If you are a shareholder who suffered a loss, please submit your contact information and purchase information to participate in the putative class action.
We also encourage you to contact Lesley F. Portnoy of The Portnoy Law Firm, at 310.692.8883, to discuss your rights free of charge. You can also reach us through the firm’s website at www.portnoylaw.com, or by email at info@portnoylaw.com.
If you choose to take no action, you can remain an absent class member.
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The Portnoy Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
CONTACT:
Portnoy Law Firm
Lesley F. Portnoy, Esq.,
www.portnoylaw.com
Office: 310.692.8883
1800 Century Park East, Suite 600
Los Angeles, CA 90067
info@portnoylaw.com
The investigation is centered around whether the Company provided false or misleading statements or failed to disclose important information that could impact investors. On April 4, 2023, GDS made certain disclosures about its Chief Executive Officer (CEO), William Wei Huang, in its Form 20-F, which were previously omitted. The Form 20-F stated the following:
“Mr. Huang has engaged in and may continue to engage in various transactions, including derivative transactions, that could reduce his beneficial ownership in our company. Mr. Huang informed us that certain variable pre-paid forward sale contract transactions involving 42,457,504 ordinary shares, which he beneficially owned, and were originally entered into between May 2020 and June 2022, would expire between March 2023 and December 2023. If Mr. Huang chooses to settle these transactions by transferring ownership of the 42,457,504 ordinary shares to the counterparties, his beneficial ownership interest in our total issued share capital may fall below 5%. This would trigger an automatic conversion event unless the 5% threshold stated in our Articles of Association is lowered or he acquires additional shares to maintain his ownership at or above 5% or any other reduced threshold.”
“In the event this occurs, all Class B ordinary shares would automatically convert into Class A ordinary shares, and the dual-class share structure would be terminated. This change would be considered a change of control for certain sales agreements, domestic loan facility agreements of ours, our subsidiaries, and consolidated entities. If such provisions in the domestic loan agreements are activated, lenders may have the right to demand early repayment. A change of control could also result in breaches or early termination of other contracts or agreements. Moreover, it may have implications regarding China’s national security review regime and anti-monopoly merger filing requirements, if applicable. Any of these events could have a significant adverse impact on our business development, financial condition, and future prospects.”
