(Yicai Global) April 7 -- Disgraced Luckin Coffee, which last week confessed to doctoring its 2019 sales figures by up to CNY2.2 billion (USD312 million), is being sued on both sides of the Pacific.

Beijing-based Vlaw Firm has started to accept compensation lawsuits from domestic investors, the China Securities Journal reported.

Luckin fabricated transactions of CNY2.2 billion from the second to fourth quarters last year, the Xiamen-based firm said in a statement on April 2. The news saw its stock price [NASDAQ:LK] hemorrhage more than 80 percent of its value, plummeting from USD26.20 to close at USD4.39 yesterday, causing immense distress to investors.

The issuing of securities and any trading activities outside of the People's Republic of China that disrupt market order within China and damage the rights and interests of Chinese investors can be prosecuted within the provisions of the country's Securities Law, the journal said today.

Several law firms in the US have also initiated class actions against the coffeehouse chain. Investors who bought stock between Nov. 13 and Jan. 31 can contact legal practitioners to see if they can recover their losses, several US law firms have said.

"I feel very sorry," Chairman Charles Lu, who is also founder of successful car-hailing app Ucar, said on his WeChat account on April 5. "I will assume my responsibilities regardless of the conclusions of the special committee."

All findings by the special committee appointed by Luckin and third-party independent agencies will be disclosed to the public as soon as possible, Luckin said on its Weibo account. The firm will take full responsibility for its actions and take all necessary measures to rectify the matter. 

Editor: Kim Taylor