OKLAHOMA CITY–(BUSINESS WIRE)–Investors who lost more than $100,000 (US) in Luckin Coffee Inc. (OTC Pink: LKNCY) should consider contacting Federman & Sherwood if interested in recovering their losses. Luckin admitted that it committed financial fraud and was recently, along with affiliates, fined for engaging in sales fraud with more penalties possible. Allegations are based on Luckin having issued misrepresentations that may have had the effect of artificially inflating its stock price between May 17, 2019 through April 2, 2020, inclusive. In addition investors who bought in the Company’s public offering conducted on or around May 17, 2019 (the “IPO”); and in or traceable to the Company’s public offering of American depositary share (“ADS”) conducted on or around January 10, 2020 (the “2020 Offering”) can also consider participating in a lawsuit to recover their losses. The Company allegedly made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) certain of Company’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; (ii) Company’s financial results thus overstated the Company’s financial health and were consequently unreliable; and (iii) as a result, the Company’s public statements were materially false and misleading.
The Company disclosed that “beginning in the second quarter of 2019, Mr. Jian Liu, the chief operating officer (“COO”) 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 the Company stated that previously issued financial statements should no longer be relied upon.
On this news, the Company’s share price fell as much as $19.28, or over 74%, thereby further injuring investors.
Federman & Sherwood seeks to recover damages on behalf of Luckin Coffee Inc. shareholders who purchased common stock during the foregoing timeframe and lost in excess of $100,000.
If you wish to discuss this action, obtain further information or participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact: Robin Hester at firstname.lastname@example.org