Class Action Lawsuit Filed Against Luckin Coffee on Behalf of Luckin Coffee Investors Who Purchased, or Otherwise Acquired, LK Securities Between May 17, 2019 and April 2, 2020, Both Dates Inclusive – Luckin Coffee Investors Who Suffered Losses Encouraged to Contact Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is making investors aware that on April 2, 2020, Luckin Coffee, Inc. (“Luckin Coffee” or the “Company”) (NASDAQ: LK) disclosed that an internal investigation found that the Company’s COO and several employees reporting to him engaged in certain misconduct, including fabricating sales transactions from the second quarter of 2019 to the fourth quarter of 2019 in an amount of approximately RMB2.2 billion.
Luckin Coffee also reported that certain costs and expenses were also substantially inflated by fabricated transactions during the same period. Luckin Coffee advised investors to no longer rely upon the Company’s previous financial statements and earning releases for the nine months ended September 30, 2019 and the two quarters starting April 1, 2019 and ended September 30, 2019, including the prior guidance on net revenues from products for the fourth quarter of 2019, and other communications relating to these consolidated financial statements.
On this news, Luckin Coffee American Depositary Shares (“ADS”) plummeted $19.80 per ADS, or approximately 75.6%, to close $6.40 per ADS on April 2, 2020, thereby damaging investors.
On April 2, 2020, a class action lawsuit was filed in United States District Court, Eastern District of New York, on behalf of persons or entities who: (1) purchased or otherwise acquired publicly traded Luckin Coffee securities from May 17, 2019 through April 2, 2020, inclusive (the “Class Period”); (2) purchased or otherwise acquired Luckin Coffee ADSs in or traceable to the Company’s public offering of ADSs conducted on or around May 17, 2019 (the “IPO”); and/or (3) purchased or otherwise acquired Luckin ADSs in or traceable to the Company’s public offering of ADSs conducted on or around January 10, 2020. The class action seeks to recover compensable damages caused by Defendants’ violations of the federal securities laws under the Securities Act of 1933 and Securities Exchange Act of 1934.
Luckin Coffee investors who purchased, or otherwise acquired, LK securities and suffered losses are encouraged to contact either Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], or John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], to discuss the securities investigation or potential legal claims.