The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Luckin Coffee Inc....
April 04 2020 - 12:00PM
Business Wire
Shareholders with $50,000 in losses or more are encouraged to
contact the firm.
The Law Offices of Frank R. Cruz reminds investors of the
upcoming April 13, 2020 deadline to file a lead plaintiff
motion in the class action 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").
If you are a shareholder who suffered a loss, click here to
participate.
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.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased or otherwise acquired Luckin securities during
the Class Period, you may move the Court no later than April 13,
2020 to request appointment as lead plaintiff in this putative
class action lawsuit. To be a member of the class action 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
action. If you wish to learn more about this class action, or if
you have any questions concerning this announcement or your rights
or interests with respect to the pending class action lawsuit,
please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz,
1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067
at 310-914-5007, by email to info@frankcruzlaw.com, or visit our
website at www.frankcruzlaw.com. If you inquire by email please
include your mailing address, telephone number, and number of
shares purchased.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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version on businesswire.com: https://www.businesswire.com/news/home/20200404005001/en/
The Law Offices of Frank R. Cruz, Los Angeles Frank R. Cruz,
310-914-5007 fcruz@frankcruzlaw.com www.frankcruzlaw.com
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