Michael has over 20 years of experience representing individual and small business plaintiffs against the world’s large financial institutions, including Visa, Mastercard, and Chase.
On April 2, 2020, Luckin Coffee Inc. disclosed that an internal probe found that its COO fabricated 2019 sales by about $310 million and that its prior 2019 financial results could not be relied upon. On this news, Luckin Coffeestock dropped by 80%, causing harm to investors.
Luckin Coffee Discloses That COO Fabricated 2019 Sales; Stock Drops 80%
In an SEC filing on April 2, 2020, Luckin Coffee disclosed that an internal probe found that its chief operating officer fabricated 2019 sales by approximately $310 million.
According to CNBC, the investigation found that Luckin’s chief operating officer and several employees had engaged in misconduct, including fabricating sales. Liu and the employees implicated in the misconduct have been suspended, and the company announced it plans to take legal action, according to the article.
The company also announced that investors should not rely on its prior 2019 financial statements and earnings releases for the nine months ended Sept. 30.
This new disclosure follows a January 2020 Muddy Waters research report, which described a Luckin Coffee fraud based on an anonymous 89-page report, and described the company as a “fundamentally broken business.”
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Our securities lawyers have recovered over a billion dollars on behalf of our clients against behemoths, such as Chase Bank, Mastercard, and Anthem Blue Cross Blue Shield. Read more about our results.
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Our Featured Securities Attorneys
Eileen is involved in the firm’s securities practice and has over a decade of experience in the legal world. She received her law degree from American University in 2005.
David’s advocacy has generated major recoveries for consumers impacted by financial fraud. He was named to the Top 40 Under 40 by Daily Journal and a “Rising Star in Class Actions” by Law360.
Amanda is spearheading a securities lawsuit against NantHealth concerning fraudulent statements to investors about the success of its key product.
Gibbs Law Group’s financial fraud and securities lawyers have more than two decades of experience prosecuting fraud. Our attorneys have successfully litigated against some of the largest companies in the United States, and we have recovered more than a billion dollars on our clients’ behalf.
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