Luckin Coffee Accounting Fraud & Scandal

Luckin Coffee Accounting Fraud & Scandal

Luckin Coffee is a Chinese coffee chain founded in Beijing in 2017. In April 2020, the company revealed it had inflated its 2019 sales revenue by up to $310 million US dollars. This led to a crash in the stock price. Many investors suffered financial losses, and there now several related lawsuits.  

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#Luckin Coffee Stock Fraud & Lawsuit

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Luckin Coffee 80 percent Loss

3 years ago •reported by user-kgyrj317

I got in December (2019) where I was really excited about the stock. I planned to hold it long term and keep adding. I also hold SBUX. Even after the Muddy Waters report and Coronavirus drove the stock down, I held and was still optimistic the stock … See More
would hold weight. But the minute the news broke the COO was accused of fraud and inflating revenue numbers I dumped it as soon as markets opened. It’s a shame because I really liked the business model and coffee is growing hype in China. I took an 80% loss on the sale but I’m not sorry for it one bit. It’s not worth my time and money to suffer the fallout of company leaders lying to shareholders and regulatory agencies.

Source: Reddit
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#luckincoffeestockfraudlawsuit #coffee

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I lost $240k on Luckin Coffee, all my life savings. Now I'm broke af

3 years ago •reported by user-jhqwf911

I lost $240k on Luckin Coffee, all my life savings. Now I'm broke af. I believed luckin was growing strong and becoming the next asia starbucks. I didn't know they could cheat on balance sheet, and had no idea about VIE structure and that a company can … See More
just fail in 3 months. From Nov to Jan did a 300% gain. I was just late to the party and entered at the wrong time, and played really badly.... I learned the lesson the hard way and I'm gonna just invest in etfs, gold and bonds for the rest of my hopefully long but quite useless life.

Source: Reddit
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#luckincoffeestockfraudlawsuit #coffee

I lost $240k on Luckin Coffee, all my life savings. Now I'm broke af photo #1
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Luckin Coffee Lawsuits

3 years ago •reported by user-ythdx584

Investors who have suffered losses on Luckin Coffee investments have potential legal claims under U.S. securities laws. Investors who purchased Luckin Coffee ADSs may be able to sue Luckin Coffee, the directors of Luckin Coffee, the Company’s auditor and the underwriters of Luckin Coffee to recover their … See More
losses.

Investors who have suffered losses on their purchases of Luckin Coffee ADSs may have strong legal claims under the U.S. securities laws because, Luckin Coffee has now admitted that its 2019 sales were fabricated by senior officers of the Company;

Apart from Luckin Coffee itself, other persons may be potentially liable, including underwriters of Luckin Coffee’s IPO and SO, and Luckin Coffee’s auditors.
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#luckincoffeestockfraudlawsuit #coffee

Luckin Coffee Lawsuits photo #1
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Luckin Coffee Accounting Scandal History

3 years ago •reported by user-vpwbt427

Luckin Coffee is a coffee retailer founded in 2017 based in Xiamen, the People’s Republic of China. Luckin Coffee owns and operates stores selling food and beverages, as well as a mobile application for food and beverage purchases.

On May 17, 2019, Luckin Coffee conducted an Initial … See More
Public Offering (“IPO”) of its ADSs.

On January 31, 2020, Muddy Waters Research published a report stating that Luckin Coffee had fabricated portions of its financial statements beginning in the third quarter of 2019, citing “smoking gun evidence” such as thousands of hours of store video, customer receipts, and monitoring of the Company’s mobile application data. On this news, the price of Luckin Coffee ADSs fell from $36.40 per share on January 30, 2020, to $32.49 per share on January 31, 2020.

On February 3, 2020, Luckin issued a press release denying Muddy Waters’s allegations. The Company “categorically denie[d] all allegations in the [Muddy Waters] Report” and assured investors that the “methodology of the Report is flawed, the evidence is unsubstantiated, and the allegations are unsupported speculations and malicious interpretations of events.”

On April 2, 2020, contrary to its previous denials, Luckin Coffee disclosed that it had conducted an internal investigation and had found that Luckin Coffee’s Chief Operating Officer Jian Liu and several of his direct reports had fabricated over $300 million of sales beginning in the second quarter of 2019. On this news, the price of Luckin Coffee ADSs fell from $26.20 per share on April 1, 2020 to $6.40 per share on April 2, 2020 – a decline of over 75%.

Luckin Coffee ADSs have now been delisted from trading on the NASDAQ.
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#luckincoffeestockfraudlawsuit #coffee

Luckin Coffee Accounting Scandal History photo #1

Recent Interesting Reports

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Subgenix Biorose powder I did not order, Fulfillment house, PO Box 5708 Tampa FL 33675

1 week ago •reported by user-gzfhx766

I did not order this product. It arrived with and unsealed at that.

On FB there was an ad for a free Burberry tote just have to pay shipping. Foolishly I clicked on it as soon as I clicked on it thinking the charge is going to … See More
be only for shipping 6.95$ or so they charge my card for $100 and try to do another separate charge for $60 or so I immediately called my bank and told them what happened. It was bait and switch. I also emailed this company and told him it was a bait and switch and they were fraud, and they kept on going back-and-forth with me that I want to keep part of. No I want all of my money back it’s fraud Then I received this powdery substance in the mail that I did not order or want. I said it was trying to off me.
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#scam #facebookscam #delivery

Subgenix Biorose powder I did not order photo #1
R

Pet Food, Wyoming, MI, USA

3 weeks ago •reported by user-rqkv1284

Acana cat food made my cats sick almost killing one. MANY brands of pet food are making pets sick and/or killing them. drjudymorgane January 18, 2024 Pet parent consumer reports of bloody diarrhea, vomiting, lethargy, food refusal, feeding: - 4Health - Orijen - Acana - Organix - … See More
Blue Buffalo - Pure Balance - Hill's - Purina - Instinct - Royal Canin - Kirkland - Stella & Chewy's - Merrick - Taste of the Wild *This list will be updated as new reports come in 2,012 likes *At this time there are no official recalls for these brands yet. Samples have been sent to an independent laboratory for testing. Toxicology reports pending investigation.
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#catfood #petfood #wyoming #michigan #us

Pet Food photo #1
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