LK Investor Alert: April 13, 2020 Filing Deadline in Class Action – Contact Lieff Cabraser
April 06 2020 - 9:00AM
Business Wire
The law firm of Lieff Cabraser Heimann & Bernstein, LLP
announces that class action litigation has been filed on behalf of
investors who purchased or otherwise acquired the publicly traded
securities of Luckin Coffee Inc. (“Luckin” or the “Company”)
(Nasdaq: LK) between May 17, 2019 and April 2, 2020, inclusive (the
“Class Period”), and/or in or traceable to the Company’s public
offerings of American Depositary Shares (“ADSs”) conducted on or
around May 17, 2019 (the “IPO”) and January 10, 2020 (the “2020
Offering,” collectively, with the IPO, the “Offerings”).
If you purchased or otherwise acquired the securities of Luckin
during the Class Period and/or in any of the Offerings, you may
move the Court for appointment as lead plaintiff by no later than
April 13, 2020. A lead plaintiff is a representative party who acts
on behalf of other class members in directing the litigation. Your
share of any recovery in the actions will not be affected by your
decision of whether to seek appointment as lead plaintiff. You may
retain Lieff Cabraser, or other attorneys, as your counsel in the
action.
Luckin investors who wish to learn more about the litigation and
how to seek appointment as lead plaintiff should click here or
contact Sharon M. Lee of Lieff Cabraser toll-free at
1-800-541-7358.
Luckin, incorporated in the Cayman Islands and headquartered in
Xiamen, China, engages in the retail sale of freshly brewed drinks,
and premade food and beverage items.
The action alleges that, throughout the Class Period, defendants
made false and/or misleading statements and/or failed to disclose
that: (1) certain of the financial performance metrics reported by
Luckin, including per-store per-day sales, net selling price per
item, advertising expenses, and revenue contribution from “other
products” had been inflated; (2) Luckin’s financial reports had
overstated the financial health of the Company and accordingly were
unreliable and would likely require restatement; and (3)
consequently, defendants’ public statements concerning Luckin’s
business, operations, and prospects were materially false and
misleading at all relevant times.
On January 31, 2020, Muddy Waters published a report claiming
that Luckin had falsified certain of its reported financial
performance metrics since the third quarter of 2019. Specifically,
the report claimed that Luckin had inflated its per-store per-day
sales figures, net selling price per item, advertising expenses,
and revenue contribution from “other products.” On this news, the
price of Luckin ADSs fell $3.91 per share, or 10.74%, from its
closing price of $36.40 on January 30, 2020, to close at $32.49 per
share on January 31, 2020, on elevated trading volume.
On February 12, 2020, J Capital published a more extensive
report bolstering the claims in the Muddy Waters report.
On April 2, 2020, Luckin announced that an internal
investigation had found that approximately RMB2.2 billion in sales
(approximately $310 million USD) had been fabricated between the
second and fourth quarter of 2019, and that the Company’s Chief
Operating Officer had been suspended. On this news, the price of
Luckin ADSs fell $19.80 per share, or 75.6%, from its closing price
of $26.20 on April 1, 2020, to close at $6.40 on April 2, 2020, on
extremely heavy trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San
Francisco, New York, and Nashville, is a nationally recognized law
firm committed to advancing the rights of investors and promoting
corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of
the nation’s top plaintiffs’ law firms for fourteen years. In
compiling the list, the National Law Journal examines recent
verdicts and settlements and looked for firms “representing the
best qualities of the plaintiffs’ bar and that demonstrated unusual
dedication and creativity.” Law360 has selected Lieff Cabraser as
one of the Top 50 law firms nationwide for litigation, highlighting
our firm’s “laser focus” and noting that our firm routinely finds
itself “facing off against some of the largest and strongest
defense law firms in the world.” Benchmark Litigation has named
Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in
America.”
For more information about Lieff Cabraser and the firm’s
representation of investors, please visit
https://www.lieffcabraser.com/.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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version on businesswire.com: https://www.businesswire.com/news/home/20200406005235/en/
Source/Contact for Media Inquiries Only Sharon M. Lee
Lieff Cabraser Heimann & Bernstein, LLP Telephone:
1-800-541-7358
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