From cnbc.com Luckin Coffee has agreed to pay a $180
From: investorplace.com While Luckin Coffee has ousted the executive team
Earlier this month, the China-based coffee chain wound up an internal probe into fake annual sales of about $300 million, following which several of its directors proposed the ousting of Lu.
The e-mail suggested Luckin Coffee is engaging in fraud and cited firsthand checks of more than 1,500 individuals at 15% of Luckin’s more than 4,000 stores in China, WSJ reported.
A Reddit user with a somewhat vulgar screen name shared a screenshot on Wednesday of a 95% loss on the Chinese coffee chain’s stock. The user, who described themselves as a 28-year-old European fitness coach, said they were intrigued by Luckin’s 300% gain from November to January.
Luckin Coffee, a fast-growing coffee chain aiming to overtake Starbucks in China, could be forced to restructure or downsize after the company revealed that its staff were fabricating sales in 2019.
China’s Luckin Coffee (ticker: LK) saw its stock plunge about 80% at Thursday’s open after its board alleged that a top executive fabricated millions of dollars worth of transactions last year—essentially rendering financial statements and guidance for 2019 unreliable.