HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages Luckin Coffee (LK) Investors Who Have Suffered Significant Losses to Immediately Contact its Attorneys: Luckin Admits False Accounting & Suspends COO

SAN FRANCISCO, April 2, 2020 /PRNewswire/ -- Hagens Berman urges investors in Luckin Coffee Inc. (NASDAQ: LK) who have suffered significant losses to submit their losses now.  A securities fraud case is pending and certain investors may have valuable claims.

Luckin Coffee Inc. (LK) Securities Fraud Class Action:

The complaint alleges Defendants misled investors about Luckin's business, operations, and compliance policies.  Specifically, Defendants misrepresented and concealed that: (i) certain of Luckin's financial performance metrics, including per-store per-day sales, net selling price per item, advertising expenses, and revenue contribution from "other" products were inflated; and (ii) Luckin's financial reports overstated its financial health and were therefore unreliable.

The complaint alleges that investors began to learn the truth on Jan. 31, 2020, when Muddy Waters Research published a scathing report about the company, citing "smoking gun evidence" showing that Luckin presented false financial metrics.  According to the report, since Q3 2019 Luckin inflated per-store per-day sales, its net selling price per item, its advertising expenses, and its revenue contribution from "other" products. This news sent the price of Luckin shares sharply lower that day.

Recently, on Apr. 2, 2020, Luckin announced after conducting an internal investigation of "misconduct, including fabricating certain transactions" spanning Q2-Q4 2019 totaling about $310 million, the company suspended Chief Operating Officer/Director Jian Liu along with other staff implicated in the misconduct.  The company also disclosed that investors should no longer rely on its financial statements for the nine months ended Sept. 30, 2019 and the last two quarters starting Apr. 1, 2019 and ended Sept. 30, 2019.  This news sent the price of Luckin shares crashing down as much as 81% during intraday trading on Apr. 2, 2020.

"We're focused on investors' losses and proving Defendants intentionally manipulated Luckin's financial metrics," said Reed Kathrein, the Hagens Berman partner leading the investigation.

Whistleblowers: Persons with non-public information regarding Luckin should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.

Contact:
Reed Kathrein, 844-916-0895

SOURCE Hagens Berman Sobol Shapiro LLP

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