Luckin Coffee

luckin coffee.webp

Added May 29, 2020

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.

Company Behavior Summary

  • 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.

Sources

About The NoGo List

Which companies put profits over people? What is the latest big business scandal? Who's taking inappropriate handouts from the government?

The NOGO List was formed as a way for consumers to see what companies have been up to and make informed decisions about which companies deserve their business. We believe these actions should be public, and should not simply disappear with the next news cycle.

Our goal is to present as accurate a picture of each company as we can, so that consumers can make their own decisions. The NOGO list can be used on its own, or as a starting point for further research. Use it however you like.

Sleep better with the knowledge that you are supporting companies aligned with your values.

And, if you see that we are missing a company that belongs on this site, please submit it. We review all submissions and will include them on the site as soon as we can.