LK - Bronstein, Gewirtz & Grossman, LLC, First Firm to File Luckin Coffee, Inc. Class Action, Updates Investors with Losses Exceeding $1 Million of Expanded Class Period and Lead Plaintiff Deadline: April 13, 2020
Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Luckin Coffee Inc.
(“Luckin” or the Company”) (NASDAQ: LK) and certain of its officers, on behalf of shareholders who purchased Luckin securities: (1) securities between May 17, 2019 and April 2, 2020, inclusive (the "Class Period"); (2) American Depositary Shares ("ADSs") pursuant or traceable to the Company's initial public offering conducted on or around May 17, 2019 (the "IPO"); and/or (3) ADSs pursuant or traceable to the Company's secondary public offering of ADSs conducted on or around January 10, 2020 (the "2020 Offering"). Such investors are encouraged to join this case by visiting the firm’s site: www.bgandg.com/lk.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The complaint alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) 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; (2) Luckin’s financial results thus overstated the Company’s financial health and were consequently unreliable; and (3) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On January 31, 2020, Muddy Waters Research published an anonymous report alleging that Luckin had fabricated certain of the Company’s financial performance metrics, beginning in the third quarter of 2019 (“3Q19”) (the “Muddy Waters Report”). The Muddy Waters Report purported to cite “smoking gun evidence,” including, inter alia, thousands of hours of store video, thousands of customer receipts, and diligent monitoring of the Company’s mobile application metrics, which allegedly showed that, since 3Q19, Luckin had inflated its per-store per-day sales figures, its net selling price per item, its advertising expenses, and its revenue contribution from “other products.” Following this news, Luckin’s American depositary share (“ADS”) price fell $3.91 per share, or 10.74%, to close at $32.49 per share on January 31, 2020.
If you wish to review a copy of the Complaint you can visit the firm’s site: www.bgandg.com/lk or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Luckin you have until April 13, 2020 to request that the Court appoint you as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.