Luckin Coffee Inc. (NASDAQ: LK) Investor Securities Class Action Lawsuit 02/13/2020

If you purchased shares of Luckin Coffee Inc. (NASDAQ: LK), you have certain options and for certain investors are short and strict deadlines running. Deadline: April 13, 2020. NASDAQ: LK investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Luckin Coffee
Case Name: 
Luckin Coffee Shareholder Class Action Lawsuit 02/13/2020
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: LK
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
02/13/2020
Class Period Begin: 
11/13/2019
Class Period End: 
01/31/2020
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
04/13/2020
Summary: 

An investor in shares of Luckin Coffee Inc. (NASDAQ: LK) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Luckin Coffee Inc. in connection with certain allegedly false and misleading statements made between November 13, 2019 and January 31, 2020.

China based Luckin Coffee Inc. engages in the retail sale of freshly brewed drinks, and pre-made food and beverage items in the People's Republic of China. On January 31, 2020, an anonymous report was published alleging that Luckin Coffee Inc fabricated several financial figures, starting in the third quarter of 2019. The report claimed, among other things, that Luckin Coffee Inc inflated the number of items per store per day based on a review of over eleven thousand hours of store video and that Luckin inflated its net selling price per item by at least 12.3%.

Shares of Luckin Coffee Inc. (NASDAQ: LK) declined from $51.38 per share on January 17, 2020 to as low as $26.75 per share on January 31, 2020.

According to the complaint the plaintiff alleges on behalf of purchasers of Luckin Coffee Inc. (NASDAQ: LK) common shares between November 13, 2019 and January 31, 2020, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between November 13, 2019 and January 31, 2020, the defendants made false and/or misleading statements and/or failed to disclose 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, that Luckin’s financial results thus overstated the Company’s financial health and were consequently unreliable, and that as a result, the Company’s public statements were materially false and misleading at all relevant times.