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  • Luckin Coffee

    Added May 29, 2020

    luckin coffee.webp

    Luckin Coffee is a publicly traded Chinese coffeehouse chain. Luckin was founded in Beijing in 2017 and rapidly grew to include over 4,500 locations by January 2020. In fact, Luckin Coffees growth was so quick that the number of Luckin coffee locations exceeded the number of Starbucks shops in under 3 years.

    • Luckin Coffee found itself in hot waters after having falsified financial and operational figures. A report, published by short-selling firm, Muddy Waters Research, claimed that Luckin inflated their numbers by up to 88%. After an internal investigation, Luckin Coffee announced that their COO, Jian Liu, had indeed fabricated the company‚Äôs 2019 sales by about $310 million USD.
    • The Wall Street Journal, investigated these claims further and found that a network of fake buyers and a made-up employee also helped drive the company's "growth".
    • On April 8, the U.S. stock market halted trading on all Luckin shares and on May 12, CEO Jenny Zhiya Qian and COO Jian Liu were relieved of their positions. As of May 20, 2020, Luckin Coffee stock was able to be traded again.

    More info about Luckin Coffee...