Luckin Coffee shop in Wuhan, China. Credit: Keitma/Shutterstock Luckin Coffee to Pay $175M to Settle Class Action Accounting Fraud Suit
Attorneys said in a court filing that the settlement, which won preliminary approval on Tuesday, was an "excellent result" for a class of investors who accused Luckin Coffee Inc. of fabricating revenue in order to boost its share price.
October 28, 2021 at 09:32 AM
5 minute read
The original version of this story was published on New York Law Journal
Luckin Coffee has agreed to settle a class-action lawsuit that claimed the Chinese rival to Starbucks fraudulently inflated its share price by falsifying revenue. Under the preliminary settlement approved Tuesday, Luckin will pay $175 million.
Luckin denied any wrongdoing and said in a separate filing that the settlement was not evidence of any admission on the part of the defendants.
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