Luckin Coffee Stock Plummets After Report of Inflated Sales Scandal
Jian Liu, the chief operating officer of Luckin Coffee (NASDAQ: LK), inflated sales figures by fabricating transactions and expenses at least from April 1 through Sept. 30, according to a press release from the company on Thursday. This bombshell release also states that an internal investigation found fabricated transactions amounting to 2.2 billion renminbi, also known as yuan, which translates to more than $300 million by current exchange rates.
As of this writing, shares of Luckin Coffee are down over 80% as a result.
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Source Fool.com