NEW YORK–(BUSINESS WIRE)–Bernstein Liebhard, a nationally acclaimed investor rights law firm, reminds investors of a filing deadline in a securities class action complaint filed on behalf of investors that (i) purchased or acquired the securities of Luckin Coffee Inc. (“Luckin” or the “Company”) (NASDAQ: LK) from May 17, 2019 through April 6, 2020, inclusive (the “Class Period”); (ii) in or traceable to the Company’s public offering of ADSs conducted on or around May 17, 2019 (the “IPO”); and/or (iii) in or traceable to the Company’s public offering of ADSs conducted on or around January 10, 2020 (the “2020 Offering”) . The lawsuit filed in the United States District Court for the Eastern District of New York alleges violations of the Securities Exchange Act of 1934 and the Securities Act of 1933.
If you purchased Luckin securities, and/or would like to discuss your legal rights and options please visit Luckin Shareholder Class Action or contact Matthew E. Guarnero toll free at (877) 779-1414 or [email protected].
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or 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.
On January 31, 2020, Muddy Waters Research published an anonymous report alleging that Luckin had fabricated certain of the Company’s financial performance metrics, beginning in the third quarter of 2019 (3Q19) (the Muddy Waters Report). The Muddy Waters Report purported to cite smoking gun evidence, including, inter alia, thousands of hours of store video, thousands of customer receipts, and diligent monitoring of the Company’s mobile application metrics, which allegedly showed that, since 3Q19, Luckin had inflated its per-store per-day sales figures, its net selling price per item, its advertising expenses, and its revenue contribution from other products.
On this news, Luckin’s American depositary share (ADS) price fell $3.91 per share, or 10.74%, to close at $32.49 per share on January 31, 2020.
Then on April 2, 2020 Luckin disclosed an internal investigation had found that millions of dollars in sales were fabricated. On this news, Luckin ADSs fell $19.80 per ADS or approximately 75.6% to close at $6.40 per ADS on April 2, 2020.
If you purchased LK securities, and/or would like to discuss your legal rights and options please visit https://www.bernlieb.com/cases/luckincoffeeinc-lk-shareholder-class-action-lawsuit-stock-fraud-251/apply or contact Matthew E. Guarnero toll free at (877) 779-1414 or [email protected].
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. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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