gds holdings -- undisclosed executive transactions (settled)
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case overview
| Court | U.S. District Court, Central District of California |
| Class Period | July 13, 2020 — April 3, 2023 |
| Settlement | $3 million |
| Status | Settled |
allegations
the complaint alleged ceo william wei engaged in undisclosed pre-paid forward sale contract transactions as early as may 2020, creating a risk of his ownership falling below 5% of outstanding shares. this would have triggered a change-of-control provision with potentially disastrous consequences, and the company would need to issue new shares to restore ownership, diluting investors.
settled for $3 million.
sources
last updated: february 22, 2026