PHILADELPHIA, April 8, 2020 /PRNewswire/ -- Kaskela Law
LLC announces that a shareholder class action lawsuit has been
filed against Luckin Coffee Inc. ("Luckin Coffee" or the "Company")
(NASDAQ: LK) on behalf of investors who purchased shares of the
company's stock between May 17, 2019
and April 2, 2019, inclusive (the
"Class Period").
During January 2020, Luckin Coffee
completed a secondary public offering of common stock, selling 9
million shares of stock to investors at $42.00 per share. Investors who purchased
shares of Luckin Coffee during January
2020 at a price of $42 per
share are encouraged to contact Kaskela Law LLC (D.
Seamus Kaskela, Esq.) at (484) 258 –
1585, or via email at skaskela@kaskelalaw.com, to discuss this
action and their legal rights and options. Additional
information may also be found at
http://kaskelalaw.com/case/luckin-coffee-inc/.
On April 2, 2020, Luckin Coffee
disclosed that its Board of Directors had formed a Special
Committee "to oversee an internal investigation," and that the
Special Committee has "brought to the attention of the 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." Following
this news, shares of Luckin Coffee's securities declined
$19.80 per share, or over 75% in
value, to close on April 2, 2020 at
$6.40 per share.
According to the complaint, defendants issued a series of false
and misleading statements to investors during the Class Period, and
failed to disclose that: (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; (ii) Luckin'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 at all
relevant times.
IMPORTANT DEADLINE: Investors who purchased
Luckin Coffee's securities during the Class Period may, no
later than April 13, 2020,
seek to be appointed as a lead plaintiff representative in the
action.
Luckin Coffee investors who purchased shares of the Company's
stock during January 2020 at a price
of $42 per share are encouraged to
contact Kaskela Law LLC. Kaskela Law LLC represents investors
in securities fraud, corporate governance, and merger &
acquisition litigation. For additional information about
Kaskela Law LLC please visit www.kaskelalaw.com.
CONTACT:
D. Seamus Kaskela,
Esq.
KASKELA LAW LLC
18 Campus Boulevard, Suite 100
Newtown Square, PA 19073
(484) 258 – 1585
(888) 715 – 1740
www.kaskelalaw.com
skaskela@kaskelalaw.com
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SOURCE Kaskela Law LLC