Luckin Coffee Securities Fraud Class Action Investigation
Girard Sharp is investigating potential violations of federal law by Luckin Coffee Inc. (NASDAQ: LK) following the company’s announcement that an internal investigation had shown its chief operating officer and other employees fabricated sales information disclosed in filings with the Securities and Exchange Commission.
The investigation revealed that Luckin Coffee’s COO and several others falsified sales transactions worth 2.2 billion yuan ($310 million) from the second quarter to the fourth quarter of last year.
On this news, shares of Luckin Coffee Inc., a Chinese coffee chain, sank as much as 81% to close at $6.40 by the end of April 2, wiping out nearly $5 billion in market value.
China’s securities regulator said that it would investigate claims of fraud at Luckin Coffee Inc., and sources said some of the banks involved in the Chinese chain’s successful U.S. IPO last year were reviewing their work in the listing.
The company said it had suspended COO Jian Liu and employees reporting to him.
If you are a Luckin Coffee shareholder and believe you may have sustained investment losses, you may be entitled to compensation. Protect your rights and contact a Girard Sharp securities fraud attorney for a free and confidential case consultation by calling toll-free at (866) 981-4800 or by filling out the form below:
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For a free consultation about your potential claims, contact one of our investment fraud attorneys at (866) 981-4800.