NEW YORK--(BUSINESS WIRE)--Scott+Scott Attorneys at Law LLP (“Scott+Scott”), a national securities and consumer rights litigation firm, is notifying investors that a class action lawsuit has been filed against Luckin Coffee Inc. (“Luckin Coffee” or the “Company”) (NASDAQ: LK) and other defendants related to alleged violations of federal securities laws. If you purchased Luckin Coffee American Depository Shares (“ADSs”) between November 13, 2019 and January 31, 2020, inclusive, you are encouraged to contact Scott+Scott attorney Jonathan Zimmerman for additional information at (888) 398-9312 or firstname.lastname@example.org.
Luckin Coffee is a China-based, technology-driven coffee store company.
The lawsuit alleges that defendants made materially false and misleading statements regarding the company’s business, operational, and compliance policies, including: (i) certain of Luckin’s financial performance metrics, including per-store per-day sales, net selling price per item, advertising expenses, and revenue contribution from “other products” were inflated; and (ii) Luckin's financial results thus overstated the Company’s financial health and were unreliable.
On January 31, 2020, Muddy Waters Research (“Muddy Waters”) published a report alleging that Luckin Coffee had fabricated certain of the Company’s financial performance metrics, beginning in the third quarter of 2019. The Muddy Waters report asserted that Luckin Coffee inflated its per-store per-day sales figures, citing a review of thousands of hours of store video, and that Luckin Coffee significantly inflated its net selling price per item.
On this news, the price of Luckin Coffee ADSs fell $3.91 per share – 10.74% – to close at $32.49 per share on January 31, 2020.
What You Can Do
If you purchased Luckin Coffee ADSs between November 13, 2019 and January 31, 2020, inclusive, you are encouraged to contact attorney Jonathan Zimmerman at (888) 398-9312 or email@example.com. The lead plaintiff deadline is April 13, 2020.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.