NEW YORK--(BUSINESS WIRE)--Labaton Sucharow LLP, a leading, award winning investor rights law firm, announces it is investigating securities claims on behalf of shareholders of Luckin Coffee, Inc. (Ticker: LK) resulting from allegations that Luckin Coffee may have issued materially misleading business information to the investing public.
Luckin Coffee purported to be China's second largest and fastest-growing coffee network, in terms of number of stores and cups of coffee sold. According to its public filings, Luckin Coffee pioneered a technology-driven new retail model to provide coffee, tea and other products with high quality, high affordability and high convenience to customers.
Today, April 2, 2020, a Special Committee brought to the attention of Luckin Coffee’s Board information indicating that, beginning in the second quarter of 2019, Mr. Jian Liu, the chief operating officer and a director of the Company, and several employees reporting to him, had engaged in certain misconduct, including fabricating certain transactions. The Special Committee recommended certain interim remedial measures, including the suspension of Mr. Jian Liu and such employees implicated in the misconduct and the suspension and termination of contracts and dealings with the parties involved in the identified fabricated transactions. The Board accepted the Special Committee’s recommendations and implemented them with respect to the currently identified individuals and parties involved in the fabricated transactions. The information identified at this preliminary stage of the internal investigation indicates that the aggregate sales amount associated with the fabricated transactions from the second quarter of 2019 to the fourth quarter of 2019 amount to around RMB2.2 billion or approximately $300ml USD.
On this news, Luckin Coffee stock plummeted 84% in pre-market trading.
If you are a shareholder or option holder that suffered losses in Luckin Coffee, and wish to participate in a potential action, learn more, or discuss the issues surrounding the investigation, please contact David J. Schwartz using the toll free number (800) 321-0476 or via email at email@example.com or firstname.lastname@example.org.
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