VNET Group Faces Class Action Over Alleged Misleading Statements

VNET Group Faces Class Action Lawsuit over Alleged Misrepresentations

VNET Group, Inc., a technology company, is currently grappling with a class action lawsuit filed by shareholders who acquired securities between April 8, 2022, and February 15, 2023. The lawsuit alleges that the company provided false or misleading statements regarding the financial stability of GenTao Capital Limited and the associated risk of default on a margin loan. According to the claims, VNET Group failed to fully disclose the precarious financial situation of GenTao Capital Limited, a business partner, which led to the authorization of new Class D shares. The issuance of these shares allegedly diluted the equity held by existing shareholders.