Wolf Popper LLP is investigating potential securities fraud claims on behalf of purchasers of Luckin Coffee Inc. (NASDAQ: LK) ADRs.
Before the market opened on April 2, 2020, Luckin Coffee Inc. disclosed that it had formed a Special Committee to oversee an internal investigation of issues brought to the Board of Director’s attention during the Company’s 2019 audit. The Special Committee has advised the Board, according to its investigation, that beginning in the second quarter of 2019, Mr. Jian Liu, Luckin’s Chief Operating Officer and a Director of Luckin, as well as several employees reporting to Mr. Liu, “engaged in certain misconduct, including fabricating certain transactions.” The false transactions in the second through fourth quarters of 2019 are believed to amount to approximately RMB2.2 billion (or $310 million) and certain costs and expenses were also substantially inflated. Luckin said investors should no longer rely upon its previous financial statements and earnings releases for the nine months ended September 30, 2019 and the two quarters starting April 1, 2019 and ended September 30, 2019.
On the morning of April 2, 2020, Luckin’s ADR price has fallen $18.48 per ADR to $7.73, or down 70.5%.
Luckin investors should contact Joshua Ruthizer at (212) 451-9668 or (877) 370-7703 or at email@example.com.
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