Luckin Coffee (OTCMKTS:LKNCY) stock is on the move Tuesday following a slew of news from the disgraced Chinese coffee company.
First off, Luckin Coffee revealed that it has reached a settlement in a class-action lawsuit against it. The company faced legal trouble after it was found falsifying financial data to make it look better to investors.
This lawsuit includes a settlement of $187.5 million that will be reduced on a pro-rata basis based on the valid opt-out notices. These will be provided to the U.S. Court no later than Oct. 8, 2021.
Next up is Luckin Coffee launching a scheme of arrangement to restructure its $460 million 0.75% Convertible Senior Notes due in 2025. The Cayman Court will have to approve the scheme, which is based on a Restructuring Support Agreement from March that was updated earlier this month.
Finally, Luckin Coffee released its annual report for 2020 today. While later than expected, it does include revenue of $618.1 million, which is a 33% increase year-over-year. The company attributes this to higher selling prices for its products.
Dr. Jinyi Guo, chairman and CEO of Luckin Coffee, said the following in the company’s earnings report.
“Luckin Coffee continues to make progress on returning the Company to normalized financial reporting. In 2020, we delivered strong revenue growth and improvements in profitability. We have continued to expand and enhance our results of operation in 2021, and our team remains dedicated to delivering high quality products and services for our customers and executing on our strategic plan for the benefit of all stakeholders.”
Investors are reacting positively to today’s news with LKNCY stock seeing heavy trading. This has some 4 million shares traded as of this writing. That’s above the company’s daily average trading volume of 2.5 million shares.
LKNCY stock was up 7.9% as of Tuesday afternoon.
We’ve got more of the latest stock market news for investors below!
InvestorPlace offers up daily dives into the stock market with our deep coverage. A few examples to check out today include Universal Music Group (AMS:UMG) IPO details, a Rewalk Robotics (NASDAQ:RWLK) short-squeeze, as well as a major deal for QuantumScape (NYSE:QS) stock. You can learn all about that at the following links!
More Tuesday Stock Market News
- Universal Music Group IPO: 8 Things for Potential UMG Stock Investors to Know as Shares Debut
- RWLK Stock Short-Squeeze Watch: What to Know as ReWalk Robotics Investors Burn the Shorts
- QS Stock Alert: The Automaker Deal That Has QuantumScape Investors Smiling Today
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.