Robbins Geller Rudman & Dowd LLP, Berger Montague PC and Shapiro Haber & Urmy LLP Announce Proposed Settlement in the Luckin Coffee Inc. Securities Litigation

Rhea-AI Summary

The Supreme Court of New York has authorized a settlement concerning a class action lawsuit against Luckin Coffee related to the issuance of convertible notes on January 10, 2020. The proposed settlement amounts to $7,000,000 and a hearing will be held on January 31, 2023, to determine its fairness. All individuals who purchased the convertible notes and did not release claims are eligible for the settlement. Claims must be submitted by January 30, 2023, to participate. Defendants deny the allegations but have agreed to the settlement.

Positive

• Proposed settlement of $7,000,000 may provide financial recovery for affected investors.

Negative

• Allegations of misstatement and omission of material facts in the prospectus could affect Luckin's reputation.

NEW YORK--(BUSINESS WIRE)-- The following statement is being issued by Robbins Geller Rudman & Dowd LLP, Berger Montague PC and Shapiro Haber & Urmy LLP regarding the Luckin Coffee Inc. Securities Litigation:

SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK: COMMERCIAL DIVISION

	X
In re LUCKIN COFFEE INC. SECURITIES LITIGATION	:	Index No. 651939/2020
This Document Relates To:	:	CLASS ACTION
THE CONSOLIDATED ACTION.	:	SUMMARY NOTICE OF PROPOSED SETTLEMENT OF CLASS ACTION
	X

TO: ALL PERSONS AND ENTITIES (AND THEIR BENEFICIARIES) WHO, AT ANY TIME, PURCHASED OR OTHERWISE ACQUIRED LUCKIN COFFEE INC. (“LUCKIN”) CONVERTIBLE NOTES ISSUED ON OR ABOUT JANUARY 10, 2020 (THE “CONVERTIBLE NOTES”) AND WHO DID NOT RELEASE CLAIMS BASED ON THEIR PURCHASE OR ACQUISITION OF THE CONVERTIBLE NOTES IN CONNECTION WITH LUCKIN’S NOTEHOLDER SCHEME OF ARRANGEMENT, OR OTHERWISE (“SETTLEMENT CLASS” OR “SETTLEMENT CLASS MEMBERS”)

THIS NOTICE WAS AUTHORIZED BY THE COURT. IT IS NOT A LAWYER SOLICITATION. PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY.

YOU ARE HEREBY NOTIFIED that a hearing will be held on January 31, 2023, at 9:30 a.m., before the Honorable Andrew Borrok, Supreme Court of the State of New York, County of New York: Commercial Division, 60 Centre Street, Courtroom 238, New York, NY 10007, to determine whether: (1) the proposed settlement (the “Settlement”) of the above-captioned action as set forth in the Stipulation of Settlement (“Stipulation”)¹ for $7,000,000 in cash should be approved by the Court as fair, reasonable, and adequate; (2) the Judgment as provided under the Stipulation should be entered; (3) to award Plaintiffs’ Counsel attorneys’ fees and expenses out of the Settlement Fund (as defined in the Notice of Proposed Settlement of Class Action (“Notice”), which is discussed below), and, if so, in what amount; (4) to award Plaintiffs for representing the Settlement Class out of the Settlement Fund and, if so, in what amount; and (5) the Plan of Allocation should be approved by the Court as fair, reasonable, and adequate.

This Action is a consolidated securities class action brought on behalf of those persons who purchased or acquired Luckin Convertible Notes, against Luckin and certain of its current and former officers and directors and the Convertible Notes underwriters (collectively, “Defendants”) for, among other things, allegedly misstating and omitting material facts from the Prospectus filed with the U.S. Securities and Exchange Commission in connection with the offering of the Convertible Notes. Defendants deny all of Plaintiffs’ allegations.

IF YOU PURCHASED OR ACQUIRED LUCKIN CONVERTIBLE NOTES, YOUR RIGHTS MAY BE AFFECTED BY THE SETTLEMENT OF THIS ACTION.

To share in the distribution of the Settlement Fund, you must establish your rights by submitting a Proof of Claim and Release form (“Proof of Claim”) by mail (postmarked no later than January 30, 2023) or electronically (no later than January 30, 2023). Your failure to submit your Proof of Claim by January 30, 2023, will subject your claim to rejection and preclude your receiving any of the recovery in connection with the Settlement of this Action. If you are a member of the Settlement Class and do not request exclusion therefrom, you will be bound by the Settlement and any judgment and release entered in the Action, including, but not limited to, the Judgment, whether or not you submit a Proof of Claim.

If you have not received a copy of the Notice, which more completely describes the Settlement and your rights thereunder (including your right to object to the Settlement), and a Proof of Claim, you may obtain these documents, as well as a copy of the Stipulation (which, among other things, contains definitions for the defined terms used in this Summary Notice) and other settlement documents, online at www.LuckinConvertibleNotesSettlement.com, or by writing to:

Luckin Convertible Notes Settlement
Claims Administrator
c/o Gilardi & Co. LLC
P.O. Box 6177
Novato, CA 94948-6177

Inquiries should NOT be directed to Defendants, the Court, or the Clerk of the Court.

Inquiries, other than requests for the Notice or for a Proof of Claim, may be made to Lead Counsel:

Ellen Gusikoff Stewart ROBBINS GELLER RUDMAN & DOWD LLP 655 West Broadway, Suite 1900 San Diego, CA 92101 Telephone: 800-449-4900

Michael C. Dell’Angelo BERGER MONTAGUE PC 1818 Market Street, Suite 3600 Philadelphia, PA 19103 Telephone: 215-875-3000

Edward F. Haber SHAPIRO HABER & URMY LLP Two Seaport Lane Boston, MA 02210 Telephone: 617-439-3939

IF YOU DESIRE TO BE EXCLUDED FROM THE SETTLEMENT CLASS, YOU MUST SUBMIT A REQUEST FOR EXCLUSION SUCH THAT IT IS POSTMARKED BY DECEMBER 27, 2022, IN THE MANNER AND FORM EXPLAINED IN THE NOTICE. ALL MEMBERS OF THE SETTLEMENT CLASS WHO HAVE NOT REQUESTED EXCLUSION FROM THE SETTLEMENT CLASS WILL BE BOUND BY THE SETTLEMENT EVEN IF THEY DO NOT SUBMIT A TIMELY PROOF OF CLAIM.

IF YOU ARE A SETTLEMENT CLASS MEMBER, YOU HAVE THE RIGHT TO OBJECT TO THE SETTLEMENT, THE PLAN OF ALLOCATION, THE REQUEST BY PLAINTIFFS’ COUNSEL FOR AN AWARD OF ATTORNEYS’ FEES AND EXPENSES, AND/OR THE AWARDS TO PLAINTIFFS FOR REPRESENTING THE SETTLEMENT CLASS. ANY OBJECTIONS MUST BE FILED WITH THE COURT AND SENT TO LEAD COUNSEL AND LUCKIN’S COUNSEL BY DECEMBER 27, 2022, IN THE MANNER AND FORM EXPLAINED IN THE NOTICE.

DATED:  OCTOBER 7, 2022

BY ORDER OF THE SUPREME COURT OF NEW YORK COUNTY OF NEW YORK: COMMERCIAL DIVISION

_______________________
¹ The Stipulation can be viewed and/or obtained at www.LuckinConvertibleNotesSettlement.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221111005002/en/

Media:

Robbins Geller Rudman & Dowd LLP

Shareholder Relations Department

Greg Wood

(619) 231-1058

Source: Robbins Geller Rudman & Dowd LLP

FAQ

What is the proposed settlement amount for Luckin Coffee's class action lawsuit?

The proposed settlement amount is $7,000,000.

When is the hearing for the Luckin Coffee settlement scheduled?

The hearing is scheduled for January 31, 2023.

Who is eligible to participate in the Luckin Coffee settlement?

All persons who purchased Luckin Coffee's convertible notes and did not release claims are eligible.

What is the deadline for submitting claims for the Luckin Coffee settlement?

Claims must be submitted by January 30, 2023.

What are the allegations against Luckin Coffee in this lawsuit?

The allegations concern misstating and omitting material facts in the prospectus for the convertible notes.