"Entrusted by the American investors of Luckin Coffee, our team submitted an application for filing a case to the Shanghai Financial Court, and now it has been officially filed!" Lawyer Dong Yizhi of Shanghai Zhengce Law Firm told IPO Daily, "This is the first case that Chinese stock investors sued in China"!
"IPO Daily" read a lot of information and found that there was no case of Chinese stock investors suing before, and Luckin Coffee may be the first case.
In addition, Dong Yizhi told IPO Daily, "Up to now (noon on April 29th, 2002/KLOC-0), three investors have sued, and about 20 are interested. In addition, 100 people have consulted, and the data is still changing dynamically. "
It is reported that Luckin Coffee was established in June 20 17, and it was listed in May 20 19 for less than two years. On the first day of listing, the total market value of Luckin Coffee reached 33.032 billion yuan.
By the end of 2065438+2009, the total market value of Luckin Coffee reached 65.99 billion yuan, almost doubling on the first day of listing. However, in February 2020, Luckin Coffee was exposed to fraud.
(Summary of market value, data source: Oriental Fortune)
At that time, Muddy Waters released a short report on Luckin Coffee, which was completed by anonymous investigators. According to the report, the daily sales of Luckin Coffee in a single store were exaggerated by at least 69% and 88% in the third and fourth quarters of 20 19, respectively.
Since then, Luckin Coffee has set up a special investigation committee to investigate.
On April 2, 2020, Luckin Coffee announced that after investigation, since the second quarter of 20 19, the company's chief operating officer Liu Jian (COO) and several employees who reported to him jointly forged the sales amount as high as 2.2 billion yuan. The operating income of Lujin Coffee in the first three quarters of 2065438+2009 was only 2.929 billion yuan.
When the announcement came out, the market was in an uproar. Luckin Coffee's share price plummeted 76% on Nasdaq, and its market value shrank sharply.
However, in June 2020, Luckin Coffee withdrew its application for hearing and withdrew from the market. The time from listing to delisting was only 13 months.
At the time of delisting, the total market value of Lujin Coffee was only 2.254 billion yuan, down 93. 18% from the first day of listing.
(Stock price chart, data source: Oriental Fortune)
On June 65438+February 65438+February 6, 2020, Luckin Coffee announced that it had reached a settlement with the US Securities and Exchange Commission (SEC) on the investigation of fabricated transactions conducted by some former executives and employees of the company. At that time, Luckin Coffee pointed out that the proposed settlement plan must be approved by the U.S. District Court for the Southern District of new york. According to public information, Luckin Coffee agreed to pay the SEC a civil fine of $654.38+$800 million.
In addition, on April 5, 20021year, Luckin Coffee announced that it had reached a new financing agreement with Dacheng Capital and Joy Capital, the existing shareholders of the company, and Dacheng Capital led this round of financing. According to the investment agreement, Dacheng Capital agreed to subscribe for senior convertible preferred shares with a total amount of US$ 240 million in Luckin Coffee through the company's private placement; Joy Capital agreed to subscribe for senior convertible preferred shares with a total amount of US$ 654.38+million through the company's private placement. Under certain circumstances, the additional investment of Dahuang Capital and Pleasant Capital can be $6543.8+$500 million.
It should be pointed out that although Luckin Coffee is listed in the US stock market, there are also many domestic investors.
Dong Yizhi told IPO Daily, "Previously, our team tried to get in touch with the Rosen Law Firm, an American class action law firm, on behalf of investors, but it had little effect. Due to the differences in the attributes of investors in the Chinese and American securities markets, the amount of investment and communication costs have become the reasons why domestic individual investors have been rejected by the US class action lawsuit. "
However, in March, 20021,the Supreme People's Court's Provisions on the Jurisdiction of Beijing Financial Court (hereinafter referred to as the Provisions) was formally promulgated, which clarified the scope of jurisdiction of Beijing Financial Court over three types of cases: financial civil and commercial cases, financial administrative cases and enforcement cases, and divided the trial-level relationship of financial cases in Beijing courts at all levels.
As the second court in China to hear financial cases, Beijing Financial Court made it clear for the first time that "the lawsuit brought by domestic investors to Beijing Financial Court on the grounds that securities issuance, trading activities or futures trading activities outside People's Republic of China (PRC) (China) have harmed their legitimate rights and interests" belongs to its jurisdiction.
Then, on April 22nd, the Supreme Law issued a decision on amending the Provisions on Jurisdiction of Shanghai Financial Court, explicitly amending the Provisions on Jurisdiction of Shanghai Financial Court, expanding the scope of jurisdiction of cases on the original basis, and proposing that "the lawsuit brought by domestic investors to Shanghai Financial Court on the grounds that securities issuance, trading activities or futures trading activities occurred outside People's Republic of China (PRC) damaged their legitimate rights and interests" can be under the jurisdiction of Shanghai Financial Court.
Up to now, both Shanghai Financial Court and Beijing Financial Court have jurisdiction over cross-border securities cases.
In this context, Dong Yizhi's team applied to the Shanghai Financial Court.
Dong Yizhi told IPO Daily that although the authentication of subject identity is different from the false statements of domestic listed companies, it is no longer so difficult to authenticate investors based on the liberalization and facilitation of the current market. In addition, although a large number of Chinese stocks are listed overseas through the VIE framework, it is difficult to identify the litigants, but in this case, due to the administrative punishment imposed by the regulatory authorities in China, the difficulty has also been broken.
IPO Daily sent Luckin Coffee an interview outline about how the litigation company views it and its possible impact on the company, but as of press time, it has not received a reply.