Investor alert: class action lawsuit against 21vianet group, inc.
announced by law offices of howard g. smith
Bensalem, pa.--(business wire)--law offices of howard g. smith announces that a class action lawsuit has been filed in the united states district court for the eastern district of texas on behalf of purchasers of the american depositary shares of 21vianet group, inc. (“21vianet” or the “company”) (nasdaq:vnet) between april 21, 2011 and september 10, 2014, inclusive (the “class period”). 21vianet provides carrier-neutral internet data center services to internet companies, government entities, blue-chip enterprises and small- to mid-size enterprises in the people’s republic of china. the complaint alleges that: (1) the company overstated the number of cabinets in its internet data center network; (2) a significant portion of their outsourced data center partnerships have been terminated; (3) the company misrepresented the financials of its managed network entities; and (4), as a result of the foregoing, the company’s financial statements were materially false and misleading at all relevant times. on september 10, 2014, a report published by trinity research group alleged that the company’s financial performance, business prospects and true financial condition have been overstated. according the complaint, the trinity report asserted that the company “overstated the number of cabinets in its internet data center network by at least 14.5%” and that 31 of the company’s purported 60 partnered data centers “have been terminated,” and in filings made to china’s state administration for industry and commerce, the “reported revenue figure in the company’s registration statement was overstated by 51%.” following this news, on september 11, 2014, shares of 21vianet fell $4.60 per share, or nearly 23%, to close at $15.52 per share on september 11, 2014, on extremely heavy volume. if you are a member of the class described above, you have until november 11, 2014, to move the court to serve as lead plaintiff, if you meet certain legal requirements. to be a member of the class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class. if you wish to learn more about this action, please contact howard g. smith, esquire, of law offices of howard g. smith, 3070 bristol pike, suite 112, bensalem, pennsylvania 19020 by telephone at (215) 638-4847, toll free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at http://www.howardsmithlaw.com.
