HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Alerts Luckin Coffee (LK) Investors to Important April 13 Deadline, Encourages Investors with Significant Losses to Contact its Attorneys
SAN FRANCISCO, CA / ACCESSWIRE / April 7, 2020 / Hagens Berman urges investors in Luckin Coffee Inc. (LK) who have suffered significant losses to submit their losses now. A new securities fraud case has been filed expanding the alleged fraudulent period.
Expanded Class Period: May 17, 2019 - Apr. 2, 2020
Lead Plaintiff Deadline: Apr. 13, 2020
Sign Up: www.hbsslaw.com/investor-fraud/LK
Contact An Attorney Now: LK@hbsslaw.com
844-916-0895
Luckin Coffee Inc. (LK) Securities Fraud Class Action:
The complaint alleges Defendants misled investors about Luckin's business, operations, and compliance policies in its registration filings and other public statements. Specifically, Defendants misrepresented and concealed 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; and (ii) Luckin's financial reports overstated its financial health and were therefore unreliable.
The complaint alleges that investors began to learn the truth on Jan. 31, 2020, when Muddy Waters Research published a scathing report about the Company, citing "smoking gun evidence" showing that Luckin presented false financial metrics. According to the report, since Q3 2019 Luckin inflated per-store per-day sales, its net selling price per item, its advertising expenses, and its revenue contribution from "other" products. This news sent the price of Luckin shares sharply lower that day.
Then, on Apr. 2, 2020, before the market opened, Luckin disclosed that "beginning in the second quarter of 2019, Jian Liu, the COO and a Director of the Company, and several employees reporting to him, had engaged in certain misconduct, including fabricating certain transactions." The Company further revealed 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 RMB2.2 billion." As a result, the COO was suspended, and Luckin stated that previously issued financial statements should no longer be relied upon.
"We're focused on investors' losses and proving Defendants intentionally manipulated Luckin's financial metrics," said Reed Kathrein, the Hagens Berman partner leading the investigation.
Whistleblowers: Persons with non-public information regarding Luckin should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email LK@hbsslaw.com.
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About Hagens Berman
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CONTACT:
Reed Kathrein
844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP
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