Why Shares of Luckin Coffee Are Tumbling Today
Shares of Luckin Coffee (NASDAQ: LK) plunged more than 70% on Thursday after the Chinese coffee retailer said its board was investigating allegations that a senior executive had fabricated transactions.
Luckin, the so-called "Starbucks of China," was a high-flier following its May 2019 initial public offering, with the shares more than doubling by early 2020. But in late January Muddy Waters Research, a well-known short-seller focused on China stocks, said it had received a report arguing that Luckin was committing fraud by inflating the number of items sold per day.
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Source Fool.com