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LOS ANGELES, June 19, 2023 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises GDS Holdings Limited (“GDS” or “the Company”) (NASDAQ: GDS ) investors that the law firm has initiated an investigation on behalf of investors that lost money on their GDS stock. GDS investors are encouraged to contact the firm to discuss their legal rights.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 844-767-8529 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
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."
Please visit our website to review more information and submit your transaction information.
The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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