Defendant Name: Luckin Coffee Inc.

Defendant Type: Public Company
SIC Code: 9999
CUSIP: 54951L10

Initial Case Details

Legal Case Name SEC v. Luckin Coffee, Inc.
First Document Date 16-Dec-2020
Initial Filing Format Civil Proceeding
Case Number 20-cv-10631
Allegation Type Issuer Reporting and Disclosure
Federal District Court New York, Southern District of New York

Violations Alleged

Exchange Act
• Sec 10(b) + Rule 10b-5
• Rule 12b-20
• Sec 13(a)
• Sec 13(b)(2)(A)
• Sec 13(b)(2)(B)
Securities Act
• Sec 17(a) (Not specified)
Other
• Rule 13a-16 Exchange Act

Resolutions

First Resolution Date 16-Dec-2020
Headline Total Penalty and Disgorgement $180,000,000

Related Documents:

comp-pr2020-319 16-Dec-2020 Complaint
Complaint
On December 16, 2020, the SEC filed a complaint against Luckin Coffee, Inc., stating: "From at lease April 2019 through January 2020, Luckin Coffee, Inc., a United States listed retail coffee provider based and operating in the People's Republic of China ("China"), intentionally fabricated more than RMB 2.12 billion (approximately USD $311 million) in retail sales transactions in an effort to falsely appear to achieve rapid growth and increased profitability and to meet the company's earning estimates.
LR-24987 16-Dec-2020 Litigation Release
Luckin Coffee Agrees to Pay $180 Million Penalty to Settle Accounting Fraud Charges
The SEC stated that: "[It] charged China-based company Luckin Coffee Inc. with defrauding investors by materially misstating the company's revenue, expenses, and net operating loss in an effort to falsely appear to achieve rapid growth and increased profitability and to meet the company's earnings estimates. Luckin, whose American Depositary Shares traded on the NASDAQ until July 13, 2020, has agreed to pay a $180 million penalty to resolve the charges."
2020-319 16-Dec-2020 Press Release--Civil Action
Luckin Coffee Agrees to Pay $180 Million Penalty to Settle Accounting Fraud Charges
The SEC stated that: "[It] charged China-based company Luckin Coffee Inc. with defrauding investors by materially misstating the company’s revenue, expenses, and net operating loss in an effort to falsely appear to achieve rapid growth and increased profitability and to meet the company’s earnings estimates. Luckin, whose American Depositary Shares traded on Nasdaq until July 13, 2020, has agreed to pay a $180 million penalty to resolve the charges."
court_doc14_20-cv-10631 04-Feb-2021 Court Docket Document
Final Judgment as to Defendant Luckin Coffee Inc.
On February 4, 2021, the Court issued a final judgment as to Defendant Luckin Coffee Inc. The Court stated: "Defendant Luckin Coffee Inc. . . . consented to entry of this Final Judgment without admitting or denying the allegations of the Complaint (except as to jurisdiction); waived findings of fact and conclusions of law; and waived any right to appeal from this Final Judgment."