[August 16, 2018]

Robbins Geller Rudman & Dowd LLP Announces a Securities Case Has Been Filed on Behalf of Purchasers of GDS Holdings Limited American Depositary Shares

Robbins Geller Rudman & Dowd LLP announces that a securities class action case was filed on behalf of purchasers of GDS Holdings Limited (NASDAQ:GDS) American Depositary Shares ("ADSs") between November 2, 2016 and July 31, 2018 (the "Class Period"). The first complaint was filed in the U.S. District Court for the Southern District of New York, is captioned Allison v. GDS Holdings Ltd., No. 1:18-cv-06960, and is assigned to Judge Castel (News - Alert). A second complaint was filed in the U.S. District Court for the Eastern District of Texas, is captioned Ramzan v. GDS Holdings Ltd., No. 4:18-cv-00539, and is assigned to Judge Mazzant.

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased GDS Holdings ADSs during the Class Period to seek appointment as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff or have questions concerning your rights, please contact Mary Blasy of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at [email protected]. Lead plaintiff motions must be filed with the court no later than 60 days from August 2, 2018.

The complaint charges GDS Holdings and certain of its officers and directors with violations of the Securities Exchange Act of 1934 by issuing materially false and misleading statements and/or failing to disclose adverse facts about the Company's business, operations, and prospects, including that the Company had overstated its utilization and occupancy rates, had made acquisitions with related parties at inflated prices, had used suspect capital and debt raisings despite large off-shore cash reserves, and had adopted unorthodox accounts receivable and payable practices. As a result of defendants' false statements and/or omissions, GDS Holdings' ADSs traded at artificially inflated prices of more than $45 per share during the Class Period.

On July 31, 2018, Blue Orca Capital released a report alleging that "GDS [was] borrowing crippling amounts of debt to enrich insiders by acquiring data centers from undisclosed related parties which [we]re not nearly as valuable as the Company [had] claim[ed]. 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 the release of this report, the price of the Company's ADSs declined more than 37% to close at $21.83 per share on July 31, 2018.

Robbins Geller is one of the world's leading law firms representing investors in securities litigation. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For five consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in both the amount recovered for shareholders and the total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit http://www.rgrdlaw.com for more information.

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