NEW YORK, April 10, 2020 (GLOBE NEWSWIRE) -- Safirstein Metcalf LLP announces that class action lawsuits have been filed on behalf of purchasers of the securities of Luckin Coffee Inc. (“Luckin” or the “Company”) (NASDAQ: LK) (1) from May 17, 2019 through April 2, 2020, inclusive (the “Class Period”); (2) in or traceable to the Company’s public offering of ADSs conducted on or around May 17, 2019 (the “IPO”); and/or (3) in or traceable to the Company’s public offering of ADSs conducted on or around January 10, 2020 (the “2020 Offering”). The lawsuits seek to recover damages for Luckin investors under the federal securities laws.
If you purchased or acquired Luckin securities and would like more information about the shareholder class action, please contact Safirstein Metcalf LLP at 1-800-221-0015 or visit www.safirsteinmetcalf.com or email info@SafirsteinMetcalf.com.
If you wish to serve as lead plaintiff, you must move the Court no later than April 13, 2020. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member.
According to the lawsuits, defendants in the Registration Statement and throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) 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) 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, the Company’s public statements were materially false and misleading at all relevant times.
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.
About Safirstein Metcalf LLP
Safirstein Metcalf LLP focuses its practice on shareholder rights. The law firm also practices in the areas of antitrust and consumer protection. All of the Firm’s legal endeavors are rooted in its core mission: provide investor and consumer protection.
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