Luckin Coffee Locks Down $187M Deal To End Investor Suit
By Dean Seal (September 21, 2021, 6:41 PM EDT) -- Luckin Coffee Inc. has signed a binding term sheet that will resolve U.S. investors' putative class action claims against the Chinese coffee chain as part of a $187.5 million global settlement.
The bankrupt company said Tuesday that the deal is subject to approval from the Cayman Islands court overseeing its provisional liquidation as well as the New York federal court where investors alleged last year that Luckin used "sham transactions" to fake hundreds of millions of dollars in sales.
"Upon final approval, this settlement will resolve a significant contingent liability and enable Luckin Coffee to move forward with a greater focus...
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