UPDATE: Luckin Coffee Stock Plummets; Securities Fraud Suit Deadline Next Week: Block & Leviton LLP Encourages Shareholders to Contact the Firm

4/2/2020, 3:29 PM (Source: GlobeNewswire)

BOSTON, April 02, 2020 (GLOBE NEWSWIRE) -- Block & Leviton LLP (www.blockesq.com), a national securities litigation firm, announces that a class action lawsuit has been filed against Luckin Coffee, Inc. (“Luckin”) (NASDAQ: LK) and certain of its officers for securities fraud.  The lead plaintiff deadline is April 13, 2020.  Investors who purchased Luckin shares between November 13, 2019 and April 1, 2020 should contact Block & Leviton for a free case evaluation.

Luckin engages in the retail sale of freshly brewed drinks, and pre-made food and beverage items in China, offering freshly brewed drinks, including freshly brewed coffee and non-coffee drinks, and food and beverage items, such as light meals.  The Company operates pick-up stores, relax stores, and delivery kitchens under the Luckin brand, as well as Luckin mobile app, Weixin mini-program, and other third-party platforms that cover the customer purchase process.

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.”  On this news, Luckin’s American depositary shares (“ADS”) price fell $3.91 per share, or 10.74%, to close at $32.49 per share on January 31, 2020.

Then, on April 2, 2020, news broke that a special committee investigation found that Luckin’s COO fabricated sales.  The stock is currently down over 84% today.

If you purchased or acquired shares of Luckin ADS and have questions about your legal rights or possess information relevant to this matter, please contact Block & Leviton attorneys at (617) 398-5600, or via email at jake@blockesq.com, or at https://shareholder.law/luckin.  Luckin investors who purchased or otherwise acquired shares of Luckin common stock during the Class Period may, no later than April 13, 2020, seek to be appointed as a lead plaintiff representative of the Class.

Block & Leviton LLP is a firm dedicated to representing investors and maintaining the integrity of the country’s financial markets.  The firm represents many of the nation’s largest institutional investors as well as individual investors in securities litigation throughout the United States.  The firm’s lawyers have recovered billions of dollars for its clients.

This notice may constitute attorney advertising.

CONTACT:
BLOCK & LEVITON LLP
260 Franklin St., Suite 1860
Boston, MA 02110
Phone: (617) 398-5600
Email: jake@blockesq.com 

SOURCE: Block & Leviton LLP
www.blockesq.com 


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