Luckin Coffee Inc., which remains in provisional liquidation, has settled a U.S. class action lawsuit, resolving investors’ claims.
The amount will be calculated based on a global settlement amount of $187.5 million, which will be reduced on a pro-rata basis based on the valid opt-out notices received pursuant to the U.S. Court’s prior order approving dissemination of a notice of pendency, the company said.
The final report of valid opt-out notices received will be provided to the U.S. court on or before Oct. 8, 2021.
“Upon final approval, this settlement will resolve a significant contingent liability and enable Luckin Coffee to move forward with a greater focus on our operations and the execution of our strategic plan,” said Luckin chairman and chief executive Dr. Jinyi Guo. “We are working diligently to enter into formal settlement agreements and obtain the necessary court approvals.”
Earlier this year, Luckin admitted to fabricating $310 million in sales in April 2020. It filed for bankruptcy on Feb. 5, 2021. Separately, the company reported a 33% revenue increase for fiscal 2020.