Deadline Reminder: Law Offices of Howard G. Smith Reminds Investors of Looming Deadline in the Class Action Lawsuit Against GDS Holdings Limited (GDS)

Law Offices of Howard G. Smith reminds investors of the upcoming August 21, 2023 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased GDS Holdings Limited (“GDS” or the “Company”) (NASDAQ: GDS) securities between April 12, 2021 and April 3, 2023, inclusive (the “Class Period”).

Investors suffering losses on their GDS investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.

On April 4, 2023, GDS disclosed that its Chief Executive Officer, William Wei Huang, had entered into pre-paid forward sale contract transactions that may trigger “actual, potential or alleged breaches or early termination of other contracts or agreements” and could potentially “have implications for the purposes of China’s national security review regime and anti-monopoly merger filing requirements.” GDS also warned that “[the] occurrence of any of the foregoing may have a material and adverse effect on [its] business development, financial condition and future prospects.”

On this news, GDS’s stock price fell $0.74, or 4%, to close at $17.80 per ADS on April 4, 2023, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially 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 to investors that: (1) Defendant Huang had engaged in undisclosed pre-paid forward sale contract transactions as early as May 2020; (2) this presented a risk of Defendant Huang’s ownership going below 5% of the Company’s outstanding shares; (3) if Huang’s ownership dipped below 5%, it would result in a change of control of the Company which, as the Company admitted, could result in disastrous consequences; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

If you purchased or otherwise acquired GDS securities during the Class Period, you may move the Court no later than August 21, 2023 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.

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