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GDS.US
id: 1224

GDS Holdings (GDS) Investor Settlement

$3,000,000
Cash Settlement
C.D. California
Court
2:23-cv-04900
Case number
07/13/2020
Class period Start
04/03/2023
Class period End
01/13/2025
Claim deadline
GDS Holdings reached an agreement with $GDS investors to settle claims related to the CEO's undisclosed pre-paid forward sale contracts.

Case Details:

On April 4, 2023, GDS revealed that CEO William Wei Huang had entered into pre-paid forward sale contracts, which the company had not previously disclosed.

  • GDS also stated that if Huang's ownership drops below 5%, it could alter the company’s share structure by converting Class B shares to Class A shares, thus ending the dual-class structure.

  • This change might lead to early loan repayments, contractual issues, and regulatory problems.

On this news, $GDS fell by 3.99% on April 4, 2023.

Based on all these events, GDS was accused of the following points:

  • The CEO engaged in undisclosed pre-paid forward sale contract transactions.

  • If his ownership fell below 5%, it would trigger a change of control with potentially disastrous consequences for the company.

GDS reached an agreement with $GDS investors to settle claims related to the CEO's undisclosed pre-paid forward sale contracts.

Case Type
US Securities Class Action
Case Status
Distribution Started
Alleged Offence
Mismanagement, 
Misleading Statements, 
Omissions
Suspected Party
Directors, 
Management
Security Type
Depository Securities (ADS, ADR, GDR)
Trade Direction
Long
Payout per Share
0.06
Filing date
06/21/2023
Plaintiffs
Larry Bergmann
Attorneys
The Rosen Law Firm, P.A. (Los Angeles, CA), The Schall Law Firm (Los Angeles, CA)
Defendants
William Wei Huang, Daniel Newman
Judge
Hon. John A. Kronstadt
Administrator
Strategic Claims Services
Settlement agreement date
2024-07-28
Court hearing date
02/10/2025
Exclusion deadline
01/06/2025
Objection deadline
01/06/2025
Attorney fee
$955,000
Trades matching type
FIFO
Disbursement date
06/13/2025

Frequently Asked Questions

When will you be able to apply for the payment?
GDS has only tentatively settled the case. The settlement amount and further information on filing claims will be known after the court approval.
Do I have to sell securities to be eligible?

No, if you have purchased securities within the class period, you are eligible to participate.

You can participate in the settlement and retain (or sell) your securities.

How long does the payout process take?

The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.

What is 11thestate?

11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:

  1. Prepare documents for your payout

  2. Audit the claim and make sure you get the maximum possible payout

  3. File a claim with the settlement administration

  4. Correspond with the settlement administration to resolve emerging issues

  5. Deliver payout directly to your brokerage account

There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.