Luckin Coffee, who has just raised money, is again sued for the development of Luckin Coffee Company.

I thought Luckin Coffee was about to turn around, but the next second Luckin Coffee was sued by US stock investors.

On April 29th, a lawyer told the media that Luckin Coffee, who had just completed a new round of financing, was facing domestic litigation by investors.

Dong Yizhi, a lawyer from Shanghai Zhengze Law firm, told the media that entrusted by Luckin Coffee's investors in US stocks, the legal team submitted an application to the Shanghai Financial Court for filing the case, which has now been formally filed.

It is reported that as of noon on April 29, 2021, a total of three investors have filed a lawsuit, about 20 interested parties, and even more than 100 people have consulted, and the data are still in dynamic change.

In March and April this year, the financial courts in Beijing and Shanghai respectively had jurisdiction over cross-border securities cases, and Dong Yizhi's team was able to submit an application to the Shanghai Financial Court for filing.

Since Luckin Coffee faked, this is the first case in which Chinese investors sued Luckin Coffee in China.

After Ruixing was fined nearly 1.2 billion days, people in the industry pointed out that Luckin Coffee will face compensation for collective complaints from investors, and Luckin Coffee will also face a larger domestic class action as the lawsuit claims of the first batch of domestic investors are filed.

Luckin Coffee was founded on October 31, 2017. he successfully landed in the capital market in May 2019. Rui received a notice of delisting from the NASDAQ Stock Exchange on May 15. Luckin Coffee officially delisted from NASDAQ on June 27th.

It is worth noting that after Luckin Coffee's financial scandal, Luckin Coffee did not fall down because of it, but achieved "not bad" results.

This year, although it is only a short period of four months, Luckin Coffee has also undergone a lot of changes.

On January 5, Luckin Coffee officially signed a contract with the Ethiopian Embassy to win Ethiopia's largest order for boutique beans.

On the evening of January 6, a shocking infighting broke out at the top of Ruixing, and a number of senior executives jointly removed the current chairman. Luckin Coffee further responded to the incident that "a number of senior executives signed a joint letter collectively requesting the removal of the current chairman." Guo would like to deny all charges.

On January 18, Luckin Coffee announced that it was officially open to join, further expanding the number of lucky stores, and the new retail partner recruitment program does not charge any form of franchise fee. Ruixing said: hope to restore the trust of investors with better data performance.

Luckin Coffee said on January 26 that the "2021 Equity incentive Plan" will be implemented, under which up to 223 million Class A common shares will be awarded to employees and directors to retain, attract and motivate them by providing equity to them.

On February 5, Luckin Coffee filed for bankruptcy protection in the United States, and announced that filing for bankruptcy protection is a good news, which makes Ruixing a step further on the road to rebirth.

On the evening of February 8, the court agreed to pay $180 million in compensation to Luckin Coffee for agreeing to pay a fine of $180 million to settle the fraud case with the Securities and Exchange Commission (SEC).

On February 17, Luckin Coffee announced that the internal investigation into the incident in which "a number of senior executives signed a joint letter requesting the removal of the current chairman" was over. the investigation results show that the investigation team has found no evidence of misconduct alleged in the joint letter and has reported the results of the investigation to the company's board of directors.

At the same time, Luckin Coffee released specific data on the operation of Luckin Coffee's stores:

In 2020, Luckin Coffee had nearly 4800 stores, nearly 100 million registered users, and current beverage sales exceeded 300 million cups. During the just-concluded Spring Festival Golden week, the staff and operation teams of more than 1900 stores across the country stick to the front line, making nearly five times the number of drinks and nearly seven times the income of the same period last year. Luckin Coffee launched a total of 77 new ready-made drinks in 2020, including thick milk latte, light milk good tea and so on.

On March 8, Ruixing officially issued a notice to open the investment promotion of unmanned coffee machine "Ruijia purchase" to 38 cities, including Beijing, Qingdao and Shanghai.

On the evening of March 16, Lucky announced on its website that it was in exclusive talks with investors to raise at least $250 million.

On the evening of April 15, Luckin Coffee received a financing of US $250 million from the two major shareholders of Dawei Capital and pleasure Capital.

On April 18, Luckin Coffee's first automatic intelligent roasting base of the whole production line was officially put into production in Fujian. At the same time, Luckin Coffee also completed the procurement of Yunnan boutique coffee beans in the new production season, with a total purchase of 1000 tons.

Now Luckin Coffee is still producing new products, it can be said that now Luckin Coffee is slowly getting back on track. Before this year, Ruixing also cut back on advertising. From the image below, we can also see that the number of Luckin Coffee stores has been on a downward trend from June 2020 to December 2021. As of November 30, the number of Luckin Coffee stores has decreased from 4507 to 3898. This is because Luckin Coffee adopted to "optimize the store structure", Lucky carried out "closure and transfer" to individual stores with poor benefits or overlapping customer coverage, continued to open new stores, and controlled costs to ensure revenue. The focus is to increase the retention and frequency of stock users, reduce costs and increase efficiency, while this year, Ruixing said that it hopes to have 4800 to 6900 self-owned stores by 2023.

At present, Luckin Coffee has just returned to the line of sight of capital. Luckin Coffee did not respond to whether Luckin Coffee's lawsuit by US stock investors will have an impact on Lucky's stable operation and sustainable profitability.

* Image source: Internet