Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international securities and consumer rights litigation firm, reminds investors that the deadline to move for “Lead Plaintiff” in a class action against Luckin Coffee, Inc. (“Luckin Coffee” or the “Company”) (NASDAQ: LK) and other defendants, related to alleged violations of federal securities laws, is April 13, 2020. If you purchased Luckin Coffee American Depository Shares (“ADSs”) between November 13, 2019 and January 31, 2020, inclusive, you are encouraged to contact Scott+Scott attorney Jonathan Zimmerman for additional information at (888) 398-9312 or jzimmerman@scott-scott.com.
According to the lawsuit, Luckin Coffee made materially false and misleading statements about Luckin Coffee’s financial performance metrics, which, as a result, were unreliable and overstated the Company’s financial health.
On January 31, 2020, Muddy Waters Research (“Muddy Waters”) published a report alleging that Luckin Coffee had fabricated certain of the Company’s financial performance metrics, beginning in the third quarter of 2019. The Muddy Waters report asserted that Luckin Coffee inflated its per-store per-day sales figures, citing a review of thousands of hours of store video, and that Luckin Coffee significantly inflated its net selling price per item.
On this news, the price of Luckin Coffee ADSs fell $3.91 per share – 10.74% – to close at $32.49 per share on January 31, 2020. Then, on April 2, 2020, Luckin Coffee disclosed that an internal investigation found that its Chief Operating Officer fabricated 2019 sales by about 2.2 billion yuan ($310 million) and warned investors not to rely on its prior financial statements and earnings releases for the nine months ended September 30, 2019.
On this news, Luckin Coffee’s ADSs plummeted more than 80% in premarket trading.
What You Can Do
If you purchased Luckin securities, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Jonathan Zimmerman at (888) 398-9312 or jzimmerman@scott-scott.com.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.
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Contacts:
Scott+Scott Attorneys at Law LLP
230 Park Avenue, 17th Floor, New York, NY 10169-1820
(888) 398-9312
jzimmerman@scott-scott.com
