According to the Complaint, Luckin Coffee Inc. engages in the retail sale of drinks, including freshly brewed coffee and non-coffee drinks, and food and beverage items such as light meals. The Company operates pick-up stores, relax stores, and delivery kitchens under the Luckin brand, as well as a Luckin mobile app, Weixin mini-program, and other third-party platforms that cover the customer purchase process.

The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations and compliance policies. Specifically, the Complaint alleges Defendants made false and/or misleading statements and/or failed to disclose that: (i) certain of Luckin’s financial performance metrics, including per-store per-day sales, net selling price per item, advertising expenses, and revenue contribution from “other products” were inflated; (ii) Luckin’s financial results thus overstated the Company’s financial health and were consequently unreliable; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.

On May 15, 2020, the Court issued an Order consolidating cases. The Court issued an Order appointing Lead Plaintiffs and Counsel on June 12. Lead Plaintiffs filed a consolidated Complaint on September 24. On March 2, 2021, the parties stipulated to provisionally certify a Class for settlement purposes. The Court issued an Order provisionally certifying a Class for settlement purposes on March 5. On March 31, Luckin advised the Court of Bankruptcy proceedings in the United States Bankruptcy Court for the Southern District of New York.

On October 20, 2021, the parties entered into a Stipulation and Agreement of Settlement. The Court granted preliminary approval of the Settlement on October 26. On July 22, 2022, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.

On April 21, 2023, the Court issued an Order approving distribution of the Class Settlement funds.