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Case Status:    ONGOING    
On or around 05/31/2019 (Ongoing date of last review)

Filing Date: August 02, 2018

Plaintiff's law firm issued a press release on August 2, 2018, announcing the law suit. According to the press release, on July 31, 2018, Blue Orca Capital released 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."

Following this report, the Company's shares plunged more than 38%.

The complaint alleges that between November 2, 2016 and July 31, 2018, inclusive (the "Class Period"), Defendants made 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 that: (1) the Company has overstated its utilization and occupancy rates; (2) it has made acquisitions with related parties at inflated prices; (3) it has used suspect capital and debt raisings despite large off-shore cash reserves; (4) it has adopted unorthodox accounts receivable and payable practices; and (5) that, as a result of the foregoing, Defendant's statements about GDS' business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.

This case was voluntarily dismissed on October 3, 2018. A related case continues in the Eastern District of Texas.

On October 26, 2018, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on December 24.


Sector: Technology
Industry: Computer Storage Devices
Headquarters: China


Ticker Symbol: GDS
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data

"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. New York
DOCKET #: 18-CV-06960
JUDGE: Hon. P. Kevin Castel
DATE FILED: 08/02/2018
CLASS PERIOD END: 07/31/2018
  1. Block & Leviton LLP
    155 Federal Street, Suite 1303, Block & Leviton LLP, MA 02110
    (617) 398-5600 (617) 507-6020 ·
  2. Finkelstein, Blankinship, Frei-Pearson & Garber, LLP

    914.298.3280 914.908.6708 ·
No Document Title Filing Date
COURT: E.D. Texas
DOCKET #: 18-CV-00539
JUDGE: Hon. P. Kevin Castel
DATE FILED: 12/24/2018
CLASS PERIOD END: 07/31/2018
  1. Steckler Gresham Cochran PLLC
    12720 Hillcrest Rd, Suite 1045, Steckler Gresham Cochran PLLC, TX 75230
    (972) 387-4040 (972) 387-4041 ·
  2. The Rosen Law Firm, P.A. (New York)
    350 Fifth Avenue, Suite 5508, The Rosen Law Firm, P.A. (New York), NY 10118
    212.686.1060 212.202.3827 ·
No Document Title Filing Date
—Related District Court Filings Data is not available