[20] In December 2021, Luckin Coffee received court approval from a federal judge in Manhattan to restructure $460M worth of debt and to settle a number of class-action lawsuits over the fabricated sales figures.

[21][22] In 2022, The Wall Street Journal had reported that the company has emerged from bankruptcy after completing the restructuring of its financial debt under United States code, and also replaced most of its top management who were held accountable for the earlier fraud.

In early January 2020, the company raised more capital through a share placement and a convertible bond sale, with worth totalling $821 million as it sought to expand into deploying vending machines that would serve fresh hot beverages and snacks.

[35]On 31 January 2020, short-selling firm Muddy Waters Research published an anonymous 89-page report on Twitter, claiming that Luckin Coffee had falsified financial and operational figures.

[36] The report claimed that the number of items sold per store was inflated by at least 69% in the third and by 88% the fourth quarter of 2019, supposedly backed by 11,200 hours of video footage.

Before the U.S. stock market opening on 3 February 2020, Luckin Coffee responded by formally denying all allegations made in the report.

[42] In mid-April 2020, American investment bank Goldman Sachs announced that it would seize and sell the Luckin stock holdings of the company's chairman, Lu Zhengyao, after he defaulted on a $518 million margin loan.

The company agreed to the settlement without admitting or denying the SEC allegations which include defrauding investors by materially misstating revenue and expenses, inflating its growth rates and understating its losses.

[55] In December 2021, Luckin received court approval to restructure a large amount of debt and settle a number of lawsuits over fabricated sales figures.

[21] According to The Wall Street Journal, Luckin Coffee emerged from bankruptcy in March 2022 and has replaced most of its top management and ousted its former chairman, chief executive and other employees who carried out the earlier fraud.

[57][58] The company opened its first overseas locations in Singapore on 31 March 2023, launching two stores in Marina Square and Ngee Ann City respectively.