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BEIJING, September 21, 2021 (GLOBE NEWSWIRE) – Luckin Coffee Inc. (in interim liquidation) (“Luckin Coffee” or the “Company”) (OTC: LKNCY) today announced that it has entered into a term sheet binding (the “Term Sheet”) with the principal plaintiffs in the context of the provisionally certified class action In re Luckin Coffee Inc. Securities Litigation, Case No.1: 20-cv-01293-JPC-JLC (SDNY) (the “Class Action”) to fully resolve all claims that have been or may be filed on behalf of a class of purchasers of the ADS of the Company between the month of May from July 17, 2019 to July 15, 2020 inclusive, which has been certified for settlement purposes.
As per the Term Sheet, the settlement is subject to finalization of the final documentation and obtaining approvals from the Cayman Court of First Instance (which oversees the interim liquidation proceedings) and the US court overseeing the class action. The Term Sheet provides that the U.S. class action settlement amount will be calculated based on an aggregate settlement amount of $ 187.5 million, which will be prorated based on valid exclusion notices received. in accordance with the previous US court order. approve the distribution of a waiting notice. The final report of valid takedown notices received will be provided to the U.S. court no later than October 8, 2021.
Dr Jinyi Guo, Chairman and CEO of Luckin Coffee, said, “Once final approval is obtained, this settlement will resolve a significant contingent liability and allow Luckin Coffee to move forward with increased focus on our operations and execution of our strategic plan. . We are working diligently to secure formal settlement agreements and obtain necessary judicial approvals. “
Safe Harbor DeclarationThis announcement contains forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “will”, “expect”, “anticipate” “,” Future “,” intention “,” plans “,” belief “,” estimates “,” potential “,” continue “,” in progress “,” goals “,” direction “and similar statements. Luckin Coffee may also make written or oral forward-looking statements in its periodic reports to the United States Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials, and in oral statements made by its officers, directors or employees to third parties, including joint provisional liquidators. All statements that are not historical facts, including statements about Luckin Coffee’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including, but not limited to the following: expenses, timing and outcome of legal and governmental proceedings existing or future surveys relating to Luckin Coffee; the outcome and effect of the ongoing restructuring of Luckin Coffee’s financial obligations; Luckin Coffee’s growth strategies; its future business development, operating results and financial condition; the effect of the identified non-confidence in, and the resulting restatement, some of the financial results previously published by Luckin Coffee; the timing of completion or the outcome of the audit of Luckin Coffee’s financial statements; the effectiveness of its internal control; its ability to retain and attract its customers; its ability to maintain and improve the recognition and reputation of its brand; its ability to maintain and improve quality control policies and measures; its ability to establish and maintain relationships with its suppliers and business partners; trends and competition in the Chinese coffee industry or in the Chinese food and beverage industry in general; variations in its income and certain cost or expense items; the expected growth of the Chinese coffee industry or of the Chinese food and beverage sector in general; PRC government policies and regulations relating to the Luckin coffee industry; the potential effects of COVID-19; and general economic and trade conditions around the world and in China and the assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties or factors is included in the documents filed by Luckin Coffee with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Luckin Coffee assumes no obligation to update any forward-looking statement, except as required by applicable law.
About Luckin Coffee
Luckin Coffee (OTC: LKNCY) has pioneered a technology-driven retail network to provide high quality, very convenient and very affordable coffee and other products to customers. Armed with exclusive technologies, Luckin Coffee pursues its vision of creating a world-class coffee brand and being part of everyone’s daily life. Luckin Coffee was founded in 2017 and is based in China. For more information, please visit investor.luckincoffee.com.
Investor and media contacts
Investor Relations:Cafe Luckin IREmail: [email protected]
Bill Zima / Fitzhugh TaylorICR, Inc. Phone: 646 880 9039
Media Relations:Café Luckin PREmail: [email protected]
Ed Trissel / Jack Kelleher Joele Frank, Wilkinson Brimmer Katcher Phone: 212 355 4449
Source: Luckin Coffee Inc.