The latest developments of Luckin Coffee! The court agreed to Luckin Coffee's compensation of 180 million US dollars!

Luckin Coffee made his latest response after Luckin Coffee agreed to pay a $180 million fine to settle the fraud case with the Securities and Exchange Commission (SEC) on the evening of Feb. 8, Beijing time.

Luckin Coffee announced on his website that he had reached a settlement with the Securities and Exchange Commission over financial fraud by some of his former executives and employees, and the settlement was approved by the District Court for the Southern District of New York on February 4, 2021.

The settlement between Luckin Coffee and SEC and approval by the court means that both parties have reached an agreement on the controversial issues of the complaint, and the prosecution withdraws the prosecution. Luckin Coffee can largely avoid the punishment of the administrative organs and maintain the normal operation of the company at the lowest cost.

Luckin Coffee also pointed out in the announcement that this means that the company is constantly making up for the negative impact caused by fabricating false transactions, and has made positive progress.

Earlier, Luckin Coffee announced that he would pay $180 million (1.175 billion yuan) to settle accounting fraud charges against him by the Securities and Exchange Commission (SEC).

Luckin Coffee and the US Securities and Exchange Commission (SEC) have reached a settlement over some former employees suspected of financial fraud, according to a statement issued by Luckin Coffee on the morning of December 17, 2020. At present, the operation of the company and stores are stable and normal. Luckin Coffee will continue to cooperate with supervision and regard compliance work as a top priority. At the same time, the company's management and staff will continue to maintain the stable operation of the company and continue to provide consumers with high-quality, cost-effective and convenient products and services.

However, Luckin Coffee pointed out at that time that the settlement agreement needed to be approved by a federal judge.

In a lawsuit filed in District Court for the Southern District of New York, SEC accused Luckin Coffee of violating the anti-fraud, reporting, books and records and internal control provisions of the Federal Securities Act.

SEC said Luckin Coffee made up at least $300m in sales between April 2019 and January this year and intended to significantly overestimate his income and expenses, underestimate his net loss and raise more than $864 million from bond and equity investors.

SEC also alleges in the indictment that Luckin Coffee's executive team executives and senior managers were involved in the fraud and that bank records were tampered with to cover up misconduct.

As a result, SEC will file a lawsuit in court accusing Luckin Coffee of violating the anti-fraud, reporting, books and records and internal control provisions of the US Federal Securities Act.

In addition, Luckin Coffee filed for bankruptcy protection with the bankruptcy court of the Southern District of New York on February 5. at the same time, Luckin Coffee Fabo said: the company and stores operate steadily and everything is normal. We will continue to provide consumers with high-quality and cost-effective products and services, and will continue to fulfill commercial obligations and pay fees to suppliers, real estate developers and employees.

* Photo Source: Luckin Coffee official website