The law firm of Lieff Cabraser Heimann & Bernstein, LLP reminds investors of the upcoming deadline to move for appointment as lead plaintiff in the class action litigation on behalf of investors who purchased or otherwise acquired the publicly traded securities of Luckin Coffee Inc. ("Luckin" or the "Company") (Nasdaq: LK) between May 17, 2019 and April 6, 2020, inclusive (the "Class Period"), and/or in or traceable to the Company’s public offerings of American Depositary Shares ("ADSs") conducted on or around May 17, 2019 (the "IPO") and January 10, 2020 (the "2020 Offering," collectively, with the IPO, the "Offerings").
If you purchased or otherwise acquired the securities of Luckin during the Class Period and/or in any of the Offerings, you may move the Court for appointment as lead plaintiff by no later than April 13, 2020. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Luckin investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Luckin, incorporated in the Cayman Islands and headquartered in Xiamen, China, engages in the retail sale of freshly brewed drinks, and premade food and beverage items.
The action alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) certain of the financial performance metrics reported by Luckin, including per-store per-day sales, net selling price per item, advertising expenses, and revenue contribution from "other products" had been inflated; (2) Luckin’s financial reports had overstated the financial health of the Company and accordingly were unreliable and would likely require restatement; and (3) consequently, defendants’ public statements concerning Luckin’s business, operations, and prospects were materially false and misleading at all relevant times.
On January 31, 2020, Muddy Waters published a report claiming that Luckin had falsified certain of its reported financial performance metrics since the third quarter of 2019. Specifically, the report claimed that Luckin had inflated its per-store per-day sales figures, net selling price per item, advertising expenses, and revenue contribution from "other products." On this news, the price of Luckin ADSs fell $3.91 per share, or 10.74%, from its closing price of $36.40 on January 30, 2020, to close at $32.49 per share on January 31, 2020, on elevated trading volume.
On February 12, 2020, J Capital published a more extensive report bolstering the claims in the Muddy Waters report.
On April 2, 2020, Luckin announced that an internal investigation had found that approximately RMB2.2 billion in sales (approximately $310 million USD) had been fabricated between the second and fourth quarter of 2019, and that the Company’s Chief Operating Officer had been suspended. On this news, the price of Luckin ADSs fell $19.80 per share, or 75.6%, from its closing price of $26.20 on April 1, 2020, to close at $6.40 on April 2, 2020, on extremely heavy trading volume.
On April 6, 2020, Goldman Sachs & Co. LLC ("Goldman Sachs") announced that an entity controlled by defendant Charles Zhengyao Lu, Chairman of Luckin’s Board of Directors, had defaulted on a $518 million margin loan facility and that a syndicate of lenders was putting up for sale 76.3 million of Luckin’s ADSs, which had been pledged as collateral for the loan by Lu and defendant Jenny Zhiya Qian, Chief Executive Officer and director at the Company. On this news, the price of Luckin ADSs fell $0.99 per share, or 18.4%, from its closing price of $5.38 on April 3, 2020, to close at $4.39 per share on April 6, 2020, on heavy trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms "representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity." Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s "laser focus" and noting that our firm routinely finds itself "facing off against some of the largest and strongest defense law firms in the world." Benchmark Litigation has named Lieff Cabraser one of the "Top 10 Plaintiffs’ Firms in America."
For more information about Lieff Cabraser and the firm’s representation of investors, please visit https://www.lieffcabraser.com/.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Source/Contact for Media Inquiries Only
Sharon M. Lee
Lieff Cabraser Heimann & Bernstein, LLP