Luckin Coffee (LK) Shareholder Investigation: Lawsuit Filed
Thornton Law Firm LLP announces that it is investigating possible claims on behalf of shareholders of Luckin Coffee (NASDAQ: LK). Investors who purchased Luckin Coffee stock between May 7, 2019 and April 6, 2020 that are interested to learn more about their potential claims and legal rights are encouraged to submit their information above. Shareholders may also contact Thornton Law Firm at https://www.tenlaw.com/cases/LK/, or call 617-531-3917.
Luckin Coffee is a chain of coffee stores with more than 3500 locations in China. On April 2, 2020, Luckin announced that it was suspending its Chief Operating Officer and several other employees for misconduct related to the fabrication of sales or transactions. In a press release, Luckin announced that it was forming a special committee of the Board of Directors to oversee an internal investigation into certain issues raised to the Board’s attention during the audit of the consolidated financial statements for the fiscal year ended December 31, 2019.
The Company’s press release stated: “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 RMB 2.2 billion. Certain costs and expenses were also substantially inflated by fabricated transactions during this period.” Renminbi is the official currency of China; 2.2 billion is equivalent to approximately $310 million.
The Company also stated: “As a result, investors should no longer rely upon the Company’s previous financial statements and earning releases for the nine months ended September 30, 2019 and the two quarters starting April 1, 2019 and ended September 30, 2019….”
Luckin Coffee’s stock price plummeted after this news was made public. Investors who purchased LK stock between May 7, 2019 and April 6, 2020 that are interested to learn more about their potential claims and legal rights are encouraged to submit their information below. Shareholders may also contact Thornton Law Firm at https://www.tenlaw.com/cases/lk/, or call 617-531-3917.
Thornton Law Firm’s securities attorneys are highly experienced in representing individual shareholders and institutional investors in recovering damages caused by violations of the securities laws. Its attorneys have established track records litigating securities cases in courts throughout the country and recovering losses on behalf of shareholders. This may be considered Attorney Advertising in some jurisdictions. Prior results do not guarantee or predict a similar outcome with respect to any future matter.