INVESTOR ALERT: Labaton Sucharow – Leading Shareholder Rights Firm -- Investigating New Claims Against Luckin Coffee Inc. &...
April 02 2020 - 3:32PM
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 dschwartz@labaton.com or
recover@labaton.com.
About the Firm
Labaton Sucharow LLP is one of the world’s leading complex
litigation firms representing clients in securities, antitrust,
corporate governance and shareholder rights, and consumer
cybersecurity and data privacy litigation. Labaton Sucharow has
been recognized for its excellence by the courts and peers, and it
is consistently ranked in leading industry publications. Offices
are located in New York, NY, Wilmington, DE, and Washington, D.C.
More information about Labaton Sucharow is available at
www.labaton.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20200402005785/en/
David Schwartz Phone: (800) 321-0476 Email:
dschwartz@labaton.com or recover@labaton.com
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