Companies

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  • Luckin Coffee

    Added May 29, 2020

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    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...

  • Wells Fargo

    Added Apr 15, 2020

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    Wells Fargo is a financial services company with headquarters in San Francisco, CA. Wells Fargo has over 8,000 branches throughout the world, and annual revenue of over $85B in 2019.

    • In 2016, Wells Fargo was found to have instituted a program to encourage employees to open new accounts for customers. Targets were set at an unattainable level, such that employees began opening new accounts under customers' names without their knowledge.
    • Ultimately over 3.5 million accounts were opened in this manner.
    • Wells Fargo employees were also found to have opened auto insurance policies for unwitting customers
    • Litigation against Wells Fargo for this scandal is ongoing.

    More info about Wells Fargo...