Author(s)

Jiani Huang, Xueqin Li, Xinru Chen

Corresponding Author

Jiani Huang

ABSTRACT

the night of April 2, 2020, Luckin Coffee released an internal investigation report on "fake 2.2 billion yuan transactions" after the investigation, admitting that Jian Liu, the company's chief operating officer and director, and his employees engaged in improper behaviors, including falsifying transaction data, starting from the second quarter of 2019.According to the data, Luckin's main business revenue in the first three quarters of 2019 was 2.929 billion yuan, while the fraud scale of 2.2 billion yuan was close to its total revenue in the three quarters.As a result, Luckin coffee's U.S. stock price fell more than 20 percent, wiping out more than $30 billion in market value.This incident has aroused the discussion from all walks of life.

KEYWORDS

Luckin Coffee, New Securities Law, D&O Insurance, Group Lawsuit