Kyros Law Firm in Letigation on Behalf of Luckin Coffee Investors
March 15, 2021
Coffee Geography Magazine
Kyros Law Offices is alerting investors of Luckin Coffee that it is filing legal claims against the company for possible securities fraud violations committed by Luckin Coffee.
According to Kyros Law Office, investors have lost millions of dollars invested in Luckin Coffee. The Law frim is entitled to fight for the rights of his clients that have lost money in the company’s stock.
Luckin Coffee (NASDAQ: LK) investors that have invested before 4/6/2020, are urged to contact the law firm to protect their rights.
The potential legal claims concern possible violations of securities law committed by Luckin Coffee management that has led to significant losses to investors. Recent lawsuits filed against the company allege that the company significantly overstated its sales data, and allege wrongdoing committed by management.
The shareholder lawsuit stems from the disaster that LK investors have faced in recent months. Public knowledge of potential problems with the company began brewing when a scathing report was published about the company in early 2020. According to the report, Luckin inflated per-store per-day sales, its net selling price per item, its advertising expenses, and its revenue contribution from "other" products. The same day, LK stock price fell with a big surprise to the shareholders. Then, on April 7th, 2020, trading in LK was halted.
Luckin Coffee Inc is a Chinese coffee company and coffeehouse chain. It was founded in Beijing in 2017. As of January 2020, it managed 4,507 stores and exceeded the number of Starbucks stores in China. Most of its stores are small "pick-up" locations in office buildings or college campuses that serve for online orders' pickup and delivery.
In April 2020, the company revealed that it had inflated its 2019 sales revenue by up to US$310 million. It resulted in the stock price crashing and several executives being fired. Trading was suspended and the company was delisted from NASDAQ on 29 June 2020. The company filed for Chapter 15 bankruptcy in the US in February 2021.