LK - Barbuto & Johansson Litigation Update: Luckin Coffee (NASDAQ: LK) Trade Halt Continues While Goldman Sachs Reports That Entity Controlled by Chairman and Founder Lu Zhengyao's Family Trust Defaulted on $518 Million of Margin Debt
WELLINGTON, Fla., April 12, 2020 (GLOBE NEWSWIRE) -- Barbuto & Johansson, P.A. (“BARJO”) and Of Counsel, Neil Rothstein, Esq. (with over 30 years of Securities Class Action Experience, including cases against ENRON and Halliburton) informs investors that a class action lawsuit has been filed on behalf of purchasers of the securities of Luckin Coffee Inc. (NASDAQ: LK) Purchasers of Luckin stock (except defendants) at ANY time from the IPO on May 17, 2019 through the expanded class period date of April 6, 2020, inclusive, are encouraged to contact the attorneys below.
Luckin stock had plunged nearly 80% on April 2 after the company’s board of directors said that it is launching an internal probe into alleged accounting fraud at the company. The stock tumbled further to $4.39 last Monday at the close, before trading was halted and has yet to reopen. Investment banks have extended margin loans to Luckin Coffee’s founder and chairman Lu Zhengyao with the company’s securities as collateral, according to reports. Goldman Sachs (GS) said that an entity controlled by Lu’s family trust defaulted on $518 million of margin debt and that a group of lenders had seized almost 80% of the company’s total float. Their $2 billion stake has diminished to just $335 million due to this alleged fraud.
PLEASE NOTE: BARJO RECOMMENDS THAT INVESTORS CONTACT THE FIRM MONDAY. Due to the high volume of calls that BARJO attorneys are handling on this case while working remotely, the Firm requests that investors e-mail the attorneys below unless investors have losses that are believed to exceed $300,000, in which case investors should both email and contact the firm telephonically. Every aggrieved shareholder is important to BARJO.
If you purchased shares in Luckin Coffee within the expanded class period set forth above, contact Anthony Barbuto, at (888) 715-2520 or via email at anthony@barjolaw.com; or Neil Rothstein at (330) 860-4092 or email at neil@barjolaw.com. An attorney will contact you to discuss this case, your options as a class member or any questions you have about this process.
Barbuto & Johansson, P.A.
Anthony Barbuto, Esq.
1-888-715-2520
12773 Forest Hill Blvd., 101
Wellington, FL 33414
www.barjolaw.com