| COMPANY |
Luckin Coffee Inc. |
| COURT |
United States District Court for the Southern District of New York |
| CASE NUMBER |
20-cv-01293 |
| JUDGE |
The Honorable Lewis J. Liman |
| CLASS PERIOD |
Traceable to Luckin’s IPO on or about May 17, 2019 |
| SECURITY TYPE |
American Depository Shares (ADS) |
Case Background:
Kessler Topaz Meltzer & Check, LLP (“Kessler Topaz”), was Co-Lead Counsel, in a securities fraud class action lawsuit filed on behalf of Luckin Coffee Inc. (“Luckin”) (formerly trading Nasdaq: LK; now OTC: LKNCY) investors who purchased or acquired the American Depository Shares (“ADS”) of Luckin from May 17, 2019 through April 1, 2020, inclusive (the “Class Period”), including those who purchased ADSs in or traceable to Luckin’s initial public offering on or about May 17, 2019 (the “IPO”), or Luckin’s secondary public offering on or about January 10, 2020 (the “SPO”).
The Alleged Wrongful Conduct:
On September 24, 2020, Kessler Topaz filed a Consolidated Complaint. As alleged in the Complaint, defendants made a number of false and misleading statements both prior to and during the Class Period. Specifically, before its May 2019 IPO and throughout the Class Period, Luckin billed itself as one of China’s fastest-growing companies, consistently touting its plans to overtake Starbucks as China’s largest coffee chain. Luckin saw its share price soar over 200% between May 2019 and January 2020, during which it also raised over $1.8 billion from unsuspecting investors in a series of public and private offerings. But less than one year after going public, Luckin admitted that its purported growth was a sham, confessing that it deliberately fabricated hundreds of millions of dollars in sales as part of a fraudulent scheme that pre-dated its IPO.
Investors learned at the end of the Class Period that beginning in April 2019—before Luckin’s IPO—Luckin’s senior executives and directors, including its founders, former chairman Charles Zhengyao Lu (“Lu”) and former CEO Jenny Zhiya Qian (“Qian”) and Jian Liu, Luckin’s former Chief Operating Officer, together with dozens of other employees working at their behest, embarked upon a brazen scheme to intentionally inflate Luckin’s financial results through the reporting of hundreds of millions of dollars in fake sales.
Unbeknownst to investors, over $300 million, or nearly half of all of the revenues that Luckin reported in the second, third, and fourth quarters of 2019, were fabricated as part of this fraudulent scheme. Following these shocking admissions, Luckin’s ADSs were delisted from the NASDAQ exchange, and its senior officers and directors—including Lu and Qian —were unceremoniously ousted from the company. All told, once Luckin’s fraud unraveled, investors suffered billions of dollars in losses on their investments. The price of Luckin’s ADSs cratered from a Class Period high of $51.38 on January 17, 2020 to just $1.38 on June 26, 2020, the last day its ADSs traded publicly on the NASDAQ.
Current Status of Case:
On April 21, 2023, the Court entered an Order Approving the Distribution Plan of Settlement and Disbursement of Funds. This action has concluded.
The deadline to file a claim is March 15, 2022. If you have any questions or need further information about this settlement, you may go to the following website,www.LuckinCoffeeSecuritiesLitigation.com, or you can contact the claims administrator, Epiq Class Action & Claims Solutions, Inc., at 1-855-535-1824.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.