Operations

Luckin Coffee reaches $175M settlement in class action suit

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October 27, 2021

Luckin Coffee, a pioneer in coffee vending and a competitor to Starbucks in China that filed for bankruptcy protection in February, reached a $175 million settlement in a shareholder class-action lawsuit charging the company with fraudulently inflating its share price by falsifying its revenue, according to New York Post report.

The settlement covers Luckin officials and underwriters of its $645 million 2019 initial public offering as well as a later offering of American depositary shares.

U.S. District Judge John Cronan approved the preliminary settlement Tuesday and scheduled a final approval hearing Jan. 31, 2022. The settlement must also be approved by a Cayman Islands court.