According to the lawsuit, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about VNET’s business, operations, and prospects. Specifically, defendants failed to disclose to investors that:
- GenTao Capital Limited was experiencing financial difficulties and was at risk of defaulting on the facility agreement;
- as a result, there was a substantial likelihood that Bold Ally (Cayman) Limited would acquire defendant Sheng Chen’s significant ownership stake in VNET;
- to restore defendant Sheng Chen’s voting interest in VNET, VNET would issue newly created shares to defendant Sheng Chen, diluting investors’ interest; and
- as a result of the foregoing, defendants’ positive statements about VNET’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
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