Luckin Coffee Inc.

LK
Delayed Nasdaq - 02/21 10:00:00 pm
40.05USD
-2.41%

Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Behalf Luckin Coffee Inc. (LK) Investors

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02/15/2020 | 02:05 am

Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Luckin Coffee Inc. (“Luckin Coffee” or the “Company”) (NASDAQ: LK) securities between November 13, 2019 and January 31, 2020, inclusive (the “Class Period”). Luckin investors have until April 13, 2020 to file a lead plaintiff motion.

Investors suffering losses on their Luckin investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.

On January 31, 2020, Muddy Waters Research (“Muddy Waters”) published an anonymous report alleging that Luckin “had evolved into a fraud by fabricating financial and operating numbers starting in [the] 3rd quarter 2019.” Among other allegations, Muddy Waters claims that the “[n]umber of items per store per day was inflated by at least 69% in 2019 3Q and 88% in 2019 4Q” and that “Luckin inflated its net selling price per item by at least RMB 1.23 or 12.3%.”

On this news, Luckin’s share price fell $3.91, or nearly 11%, to close at $32.49 per share on January 31, 2020, thereby injuring investors.

The complaint alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose: (1) that 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) that Luckin’s financial results thus overstated the Company’s financial health and were consequently unreliable; and (3) that, as a result, the Company’s public statements were materially false and misleading at all relevant

times.

If you purchased Luckin securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Business Wire 2020
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