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

Tide, Gain, Ace, and Ariel Detergent Packets recalled due to Risk of Serious Injury, USA

2 weeks ago •source www.cpsc.gov

Recall notice

Procter & Gamble has issued a recall for 8.2 million bags of Tide, Gain, Ace, and Ariel laundry detergent pods due to a risk of serious injury. The packaging of these products can split open, posing a risk if the contents are ingested or come into contact … See More
with skin or eyes. The issue with the packaging was discovered after the company received four reports of children in the United States accessing the liquid laundry packets, three of which reported ingestion during the time period that the recalled lots were sold. However, it is not known if these laundry packets came from the recalled bags. No confirmed cases directly relating to this packaging defect have been reported.

The recall involves Tide Pods, Gain Flings, Ace Pods, and Ariel Pods liquid laundry detergent packets packaged in flexible film bags. These products were manufactured between September 2023 and February 2024. The recall applies to bags containing 12 to 39 laundry detergent packets, with a variety of scents and types:
- Gain Flings Original 
- Gain Flings Moonlight Breeze Scent 
- Gain Flings Blissful Breeze Scent 
- Gain Flings Spring Daydream Scent 
- Gain Flings Plus Ultra Oxi 
- Gain Flings Plus Odor Defense 
- Tide Pods Original 
- Tide Pods Spring Meadow Scent 
- Tide Pods Light 
- Tide Simply Pods Plus Oxi Boost 
- Tide Pods Clean Breeze Scent 
- Tide Pods Free & Gentle 
- Tide Pods Oxi 
- Tide Pods Ultra Oxi 
- Ace Pods Clean Breeze 
- Ace Pods Spring Meadow 
- Ariel Pods Alpine Breeze 

The products were sold At: Big Lots, CVS, Family Dollar, Home Depot, Sam’s Club, Target, Walmart, and other major stores nationwide and online at Amazon.com and other websites from September 2023 through present for between $5 (one 12 ct. bag) and $30 (four 39 ct. bags in a box). The total number of recalled units is approximately 8.2 million, with an additional 56,741 sold in Canada.

Please do not use this product if you have it at home and return it to the store where it was purchased for a full refund and a free replacement child-resistant bag to store the product.

If you or a loved one are harmed or experiencing any symptoms, it is important to report it. Reporting can help to detect & resolve outbreaks early and prevent others from being harmed, and enables better surveillance. If symptoms persist, seek medical care.

Source: www.cpsc.gov
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#recall #us

Tide, Gain, Ace, and Ariel Detergent Packets recalled due to Risk of Serious Injury photo #1
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Not the same as advertised, New Orleans, LA, USA

1 week ago •reported by user-ybpyc327

I order two of the nano tech bullet proof vest, when it arrived the material was a thin allistic material and not seeing hours this material could stop any for arm nor knife stabbing.. I want the correct item or my money back!! But it came from Heathers Morty’s out of Union City, New Jersey 07087

#onlineshopping #scam #onlinescam #delivery #neworleans #louisiana #us

Not the same as advertised photo #1
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Online scam, Fort Pierce, FL, USA

2 weeks ago •reported by user-pxyrp196

I received a text from +1 (469) 888-8418 stating the following: I posted the text that I received. I paid $149.09 when I realized it was a scam. I reported this to the Federal Trade Commission and a couple of more sites. Just want you to be … See More
aware that this phone number is showing on my bank statement and a different number on the text.
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#scam #fortpierce #florida #us

Online scam photo #1
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Heathersb mottysy Scam, 1655 Richmond Ave, Staten Island, NY 10314, USA

3 weeks ago •reported by user-fgpcf384

I ordered on Facebook two bronze adhesive decorative shower hanging pegs. After almost two months I received two small brass screw in hanging pegs. SCAM. I was charged around $50 on my credit card for something I could have bought for a couple bucks at Home Depot. … See More
I’ve seen this same scam advertising in Facebook recently. Beware.
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#scam #facebookscam #delivery #newyork #us

Heathersb mottysy Scam photo #1
2.8K
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Scam Site, HUI*aigougoujia. com

2 weeks ago •reported by user-vkkd9276

This site is posing as a Lowe's "overstock" website where you purchase Lawn equipment and other products at a reduced rate. I attempted to purchase a Toro Lawn Mower for $52.25. Please see purchase info below.


AMOUNT
USD 52.25

DATE
2024-04-02

MERCHANT NAME ON STATEMENT
HUI*aigougoujia. com … See More


ORDER ID
IMD2404020537561781

I have yet to receive product OR shipment confirmation email which was promise.

SCAM !!
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#scam #onlineshopping #onlinescam #delivery

Scam Site photo #1
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Unordered Package, 2800 N Franklin Rd, Indianapolis, IN 46219, USA

1 week ago •reported by user-xcwhw738

I received a package from "ROSEWOOD P," 2800 N Franklin Rd. Indianapolis IN, 46219. I did not order anything from this person or address nor have I ever ordered from them. Please check this out. I'm in Visalia, CA USA. Thank you

Item is a metal cylinder … See More
about 1" in length and the top third of it has a hard plastic sleeve covering it. There was no receipt, order form or shipping information inside the bubble pack shipped via UPS Ground Advantage, USPS Tracking # 934 6361 1032 2950 244****.
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#unorderedpackage #delivery #2800northfranklinroad #indianapolis #indiana #us

Unordered Package photo #1
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Scam alert, 192-01 Northern Blvd, Flushing, NY, USA

1 week ago •reported by user-fmgdv214

I received a Daily Detox from SlimFit Fusion in Flusing NY that I did not order

I received to packages, the last one fro DP 192-01 Northern Blvd. Flusing NY. It was for Daily Detox by Slim Fit Fusion. I also received another package Keto+ACV. Neither were ordered

#unorderedpackage #ketogummiesscam #delivery #newyork #us

Scam alert photo #1
1.4K

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