SAN DIEGO, April 2, 2020 /PRNewswire/ --
Shareholder Rights Law Firm Johnson Fistel, LLP, is investigating potential claims against Luckin Coffee Inc. ("Luckin" or the "Company") (NASDAQ: LK) for violations of federal securities laws.
On or about January 15, 2020, Luckin sold 4.8 million shares of stock in a secondary stock offering at $42.00 a share, raising over $380 million in new capital.
On April 2, 2020, Luckin announced that the Chief Operating Officer Jian Liu and several employees reporting to him engaged in misconduct that cast doubts on the foundations of the Chinese coffee chain's meteoric rise and its emergence as a key competitor to Starbucks Corp.
Luckin further stated, "certain costs and expenses were also substantially inflated by fabricated transactions during this period," The Company indicated that investors shouldn't rely on previous financial statements for the nine months ended September 30, 2019.
Following this news, shares of Luckin plummeted over 70% in early morning trading on April 2, 2020.
If you purchased Luckin shares in the January 2020 secondary offering, and are interested in learning more about the investigation, please contact Jim Baker (jimb@johnsonfistel.com) at 619-814-4471. If emailing, please include a phone number.
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About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.
Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
jimb@johnsonfistel.com
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SOURCE Johnson Fistel, LLP