PHILADELPHIA, April 2, 2020 /PRNewswire/ -- Kehoe Law Firm, P.C. is making investors aware that on April 2, 2020, Lucking Coffee Inc. ("Luckin Coffee" or the "Company") (NASDAQ: LK) disclosed that the Company's Special Committee overseeing an internal investigation reported ". . . that, beginning in the second quarter of 2019, Mr. Jian Liu, the chief operating officer and a director of the Company, and several employees reporting to him, had engaged in certain misconduct, including fabricating certain transactions." [Emphasis added.]
On this news, Luckin shares dropped more than 80% in pre-market trading, thereby injuring LK investors.
Luckin Coffee investors should be aware that a class action lawsuit already has been filed against Luckin Coffee and certain of its officers for securities fraud. The lead plaintiff deadline is April 13, 2020.
Luckin Coffee Investors who purchased, or otherwise acquired, Luckin Coffee shares between November 13, 2019 and April 1, 2020, both dates inclusive, are encouraged to contact either Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], or John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], to discuss the securities investigation or potential legal claims.
Luckin Coffee also disclosed that "[t]he information identified at this preliminary stage of the Internal Investigation indicates that the aggregate sales amount associated with the fabricated transactions from the second quarter of 2019 to the fourth quarter of 2019 amount to around RMB2.2 billion. Certain costs and expenses were also substantially inflated by fabricated transactions during this period."
Additionally, Luckin Coffee stated that ". . . investors should no longer rely upon the Company's previous financial statements and earning releases for the nine months ended September 30, 2019 and the two quarters starting April 1, 2019 and ended September 30, 2019, including the prior guidance on net revenues from products for the fourth quarter of 2019, and other communications relating to these consolidated financial statements."
Luckin Coffee investors who purchased, or otherwise acquired, LK securities and suffered losses are encouraged to contact either Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], or John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], to discuss the securities investigation or potential legal claims.
Kehoe Law Firm, P.C., with offices in New York and Philadelphia, is a multidisciplinary, plaintiff–side law firm dedicated to protecting investors from securities fraud, breaches of fiduciary duties, and corporate misconduct. Combined, the partners at Kehoe Law Firm have served as Lead Counsel or Co-Lead Counsel in cases that have recovered more than $10 billion on behalf of institutional and individual investors.
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