Big Luckin Coffee Investor Sells Entire Stake

From: barrons.com

Luckin Coffee has seen a big investor sell off the Chinese coffee chain’s shares after the company disclosed that an executive may have been providing false data.

Luckin’s (ticker: LK) American depositary receipts plunged on April 2 on news that Chief Operating Officer Jian Liu, along with several employees reporting to him, allegedly fabricated as much as $310 million in transactions from the second quarter to the fourth quarter of 2019. Luckin ADRs plunged. The investigation is continuing. ADRs are now down 88.8% year to date through Monday’s close, compared with a 17.6% drop in the S&P 500 index, a measure of the broader market.

Read More

Suggested Reading