Lowenstein serves as bankruptcy counsel to lead plaintiffs in a securities class action against Luckin Coffee Inc. (LC0Ay.MU) that has resulted in an all-cash settlement of $175 million. The lead plaintiffs claimed that the company, considered to be the Chinese rival to Starbucks, had fraudulently inflated its share price by falsifying revenue.
Lowenstein helped to structure and negotiate the settlement with lead counsel given the pending insolvency proceeding in the Cayman Islands and the pending Chapter 15 proceeding in the United States. The settlement has been approved by the Grand Court in the Cayman Islands and has been preliminarily approved by the federal district court.
The accord also covers Luckin officials, as well as underwriters of the Xiamen, China-based company's $645 million initial public offering in 2019 and a later offering of American depositary shares. Luckin agreed last December to pay a $180 million fine to settle U.S. Securities and Exchange Commission accounting fraud civil charges.
A hearing is scheduled on July 31, 2022, in the federal district court to consider final approval of the settlement.
The Lowenstein team was led by Michael (“Mickey”) Etkin and included Andrew Behlmann and Scott Cargill.
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