LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”), a national investors rights law firm, announces that a class action lawsuit has been filed on behalf of investors who purchased Luckin Coffee Inc. (“Luckin” or the “Company”) (NASDAQ: LK): (1) securities between May 17, 2019 and April 2, 2020, inclusive (the "Class Period"); (2) American Depositary Shares (“ADSs”) pursuant or traceable to the Company's initial public offering conducted on or around May 17, 2019 (the "IPO"); and/or (3) ADSs pursuant or traceable to the Company's secondary public offering of ADSs conducted on or around January 10, 2020 (the "2020 Offering"). Luckin investors have until April 13, 2020 to file a lead plaintiff motion.
If you suffered a loss on your Luckin investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information here or contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, via email email@example.com or visit our website at www.glancylaw.com to learn more about your rights.
On January 31, 2020, Muddy Waters Research (“Muddy Waters”) published an anonymous report alleging that Luckin “had evolved into a fraud by fabricating financial and operating numbers starting in [the] 3rd quarter 2019.” Among other allegations, Muddy Waters claims that the “[n]umber of items per store per day was inflated by at least 69% in 2019 3Q and 88% in 2019 4Q” and that “Luckin inflated its net selling price per item by at least RMB 1.23 or 12.3%.”
On this news, Luckin’s share price fell $3.91, or nearly 11%, to close at $32.49 per share on January 31, 2020, thereby injuring investors.
Then, on April 2, 2020, before the market opened, Luckin disclosed 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 Company further revealed 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." As a result, the COO was suspended, and Luckin stated that previously issued financial statements should no longer be relied upon.
On this news, the Company's share price fell $19.80, or over 75%, to close at $6.40 per share on April 2, 2020, thereby injuring investors further.
The complaint alleges that defendants made false and/or misleading statements and/or failed to disclose: (1) that 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; (2) that Luckin’s financial results thus overstated the Company’s financial health and were consequently unreliable and would likely require restatement; and (3) as a result, Defendants’ statements about Luckin’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired Luckin securities during the Class Period or ADSs pursuant and/or traceable to the IPO or the 2020 Offering, you may move the Court no later than April 13, 2020 to ask the Court to appoint you as lead plaintiff. 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, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to firstname.lastname@example.org, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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