NEW YORK, April 02, 2020 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces it is investigating serious and disturbing securities class action claims on behalf of shareholders of the American Depositary Shares (“ADSs” or “shares”) of Luckin Coffee, Inc. (NASDAQ: LK) resulting from allegations that Luckin Coffee may have issued materially false financial statements.
All investors who purchased ADSs of Luckin Coffee, Inc.and incurred losses are urged to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774.
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Luckin Coffee purported to be one of China's fastest-growing coffee retailers, in terms of number of stores and cups of coffee sold. According to its public filings with the SEC, Luckin Coffee pioneered a technology-driven new retail model to provide coffee, tea and other products with high quality, high affordability and high convenience to customers.
This morning before the opening of trading, a Special Committee brought to the attention of Luckin Coffee’s Board of Directors 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. The Special Committee recommended certain interim remedial measures, including the suspension of Mr. Jian Liu and such employees implicated in the misconduct and the suspension and termination of contracts and dealings with the parties involved in the identified fabricated transactions. The Board accepted the Special Committee’s recommendations and implemented them with respect to the currently identified individuals and parties involved in the fabricated transactions. 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 amounted to approximately $300 million US dollars.
On this news, Luckin Coffee ADSs traded as low as $4.90 per ADS after opening for trading. Luckin Coffee traded as high as $51.38 per ADS as recently as January 17, 2020.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website at www.whafh.com.
Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Kevin Cooper, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: gstone@whafh.com, kcooper@whafh.com or classmember@whafh.com
Tel: (800) 575-0735 or (212) 545-4774
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