Monday, 08 January 2024 12:30 PM
Lawsuits
Upcoming Lead Plaintiff Deadline is February 15, 2024
NEW YORK, NY / ACCESSWIRE / January 8, 2024 / Wolf Haldenstein Adler Freeman & Herz LLP ("Wolf Haldenstein") reminds investors that a federal securities class action has been filed against VNET Group, Inc. ("VNET" or "the Company") (NASDAQ:VNET) and certain of its officers on behalf of all persons and entities that purchased or otherwise acquired VNET American depositary shares ("ADS") between April 8, 2022 and February 15, 2023, inclusive (the "Class Period").
All investors who purchased shares and incurred losses are advised to contact the firm immediately at [email protected] or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action or join the case on our website, www.whafh.com.
If you have incurred losses, you may, no later than February 15, 2024, request that the Court appoint you as the lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights.
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VNETis a private internet and data center service provider which operates throughout China. As of February 28, 2022, the Company's co-founder, Defendant Josh Sheng Chen, beneficially owned approximately 78.52 million VNET shares individually and through his sole ownership of certain companies, including GenTao Capital Limited ("GenTao") and Sunrise Corporate Holding Ltd. ("Sunrise"). On August 19, 2021, he and his companies entered into a $50.25 million margin loan facility with Bold Ally (Cayman) Limited ("Bold Ally"), pledging all of his shares of GenTao, Sunrise, and Beacon Capital Group Inc. as collateral, thus effectively pledging a significant percentage of his VNET shares as collateral ("the Facility Agreement"). At this time, GenTao was experiencing a great deal of financial difficulty, though this was never disclosed.
On February 13, 2023, before the market opened, Bold Ally announced it would exercise its rights under the Facility Agreement following a default by GenTao and was entitled to 48,515,634 Class A ordinary shares (in the form of 8,085,939 American depositary shares) and 27,757,992 Class B ordinary shares of the Company.
On this news, the Company's share price fell $0.20, or 3.2% on February 13, 2023, on unusually heavy trading volume.
The Company's share price continued to decline by $1.09, or 17.8%, over the next consecutive trading session, to close at $5.02 per share on February 14, 2023, on unusually heavy trading volume.
Then, on February 15, 2023, before the market opened, VNET disclosed that the board of directors had approved and authorized the issuance of up to 555,000 newly created Class D ordinary shares to the Executive Chairman of the Board, and that these shares would be granted a 500-to-1 vote per share power. The Company stated this measure was required in order to "protect the Company's interests and continued stability."
On this news, the Company's share price fell $0.10, or 2%, to close at $4.92 per share on February 15, 2023.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas, and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at [email protected].
Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Gregory Stone, Director of Case and Financial Analysis
Email: [email protected] or [email protected]
Tel: (800) 575-0735 or (212) 545-4774
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
SOURCE: Wolf Haldenstein Adler Freeman & Herz LLP