vnet group -- ownership dilution securities fraud

case overview

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allegations

the complaint alleges vnet group, a chinese data center operator, concealed:

1. subsidiary difficulties: gentao (vnet subsidiary) was experiencing financial difficulties and at risk of defaulting
2. ownership change risk: there was a substantial likelihood that bold ally would acquire co-founder josh sheng chen’s significant ownership stake
3. dilution: the company would issue newly created shares to restore chen’s voting interest, diluting existing investors

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sources

• globenewswire: pomerantz class action filing

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last updated: february 22, 2026