GDS INVESTOR ALERT: Kaskela Law LLC Announces Investigation of GDS Holdings Limited on Behalf of Investors
RADNOR, PA / ACCESSWIRE / July 31, 2018 / Kaskela Law LLC is investigating GDS Holdings Limited (NASDAQ: GDS) (“GDS” or the “Company”) on behalf of the Company’s investors. The investigation seeks to determine whether GDS and certain of its officers and/or directors have engaged in securities fraud by issuing misleading statements to investors, and whether GDS investors have been harmed as a result.
GDS investors are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (484) 258 – 1585 or (888) 715 – 1740, to discuss this investigation and their legal rights and options. Investors may also contact the firm online and submit their information at http://kaskelalaw.com/case/gds-holdings/.
On July 31, 2018, Blue Orca Capital published 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.” The report also stated that Blue Orca Capital 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, the Company’s shares declined approximately $9.00 per share, or over 25% in value, during the July 31, 2018 trading day.
GDS investors are encouraged to contact Kaskela Law LLC and/or submit their information to the firm online at http://kaskelalaw.com/case/gds-holdings/. Kaskela Law
LLC exclusively prosecutes shareholder actions in state and federal courts
throughout the country on behalf of investors.
For additional information about Kaskela Law LLC please visit www.kaskelalaw.com. This notice may constitute attorney advertising in certain jurisdictions.
SOURCE: Kaskela Law LLC