Bronstein, Gewirtz & Grossman, LLC Announces Investigation of Luckin Coffee Inc. (LK)
NEW YORK, April 2, 2020 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Luckin Coffee Inc. ("Luckin" or the Company") (NASDAQ: LK). Investors who purchased Luckin securities are encouraged to obtain additional information and assist the investigation by visiting the firm's site: www.bgandg.com/lk.
The investigation concerns whether Luckin and certain of its officers and/or directors have violated federal securities laws.
On January 31, 2020, Muddy Waters Research published an anonymous report that claimed Luckin fabricated several financial figures, starting in the third quarter of 2019. The article continued to state that Luckin overstated the number of items per store per day based on a review of over eleven thousand hours of store video. The article also said that Luckin exaggerated its net selling price of each item by over 12.3%. Following this news, Luckin's ADRs dropped during intraday trading on January 31, 2020.
On April 2, 2020, Luckin revealed that its Special Committee conducting its internal investigation said ". . . 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." Following this news, Luckin dropped over 80% in pre-market trading on April 2, 2020.
Luckin also said, "[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 said, ". . . 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.
If you are aware of any facts relating to this investigation, or purchased Luckin shares, you can assist this investigation by visiting the firm's site: www.bgandg.com/lk. You can also contact Peretz Bronstein or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC: 212-697-6484.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | [email protected]
SOURCE Bronstein, Gewirtz & Grossman, LLC
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