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

Honeywell Non-Sterile Eyewash Cartridge - recalled due to Non-compliance, USA

2 weeks ago •source www.fda.gov

Recall notice

Honeywell Safety Products USA, Inc. is voluntarily recalling Fendall 2000 Non-Sterile Eyewash Cartridge for the Fendall 2000 Eyewash Station. This recall is being conducted at the industrial consumer level. Honeywell’s supplier of the Fendall 2000 Non-Sterile Eyewash Cartridge has been found to be non-compliant with current good … See More
manufacturing practice (cGMP) requirements. To date, Honeywell Safety Products USA, Inc. has not received any reports of adverse events related to this recall.

The Fendall 2000 Non-Sterile Eyewash Cartridge is used for flushing or irrigating the eye to reduce chances of severe injury caused by acid, alkali, or particulate contamination. Product is contained in a 25-liter Ethylene-vinyl acetate (EVA) bag that is designed for use with the Fendall 2000 Eyewash Station. Only the Fendall 2000 refill cartridges are subject to this review, no other eyewash products. The saline eyewash solution contains purified water, benzalkonium chloride, edetate disodium, sodium chloride, sodium phosphate diabasic, and sodium phosphate monobasic. It is not marketed as sterile.

- Fendall 2000 Non-Sterile Eyewash Cartridge. Manufacturer’s Product Number/ Catalog Number: 32-002050-0000. Manufacturing Dates: 11-Oct- 2021 through 21-Jun-2023. Expiration Date: 11-Oct-2023 through 21-Jun-2025. Region: USA. Quantity: 6,954.

- Fendall 2000 Non-Sterile Eyewash Cartridge. Manufacturer’s Product Number/ Catalog Number: 32-002050-0000. Manufacturing Dates: 11-Oct- 2021 through 21-Jun-2023. Expiration Date: 11-Oct-2023 through 21-Jun-2025. Canada. Quantity: 3,651

Honeywell Safety Products USA, Inc. is notifying its distributors and customers by email, telephone or certified mail and is requesting anyone with product in its inventory to destroy or dispose of all units subject to the recall. Customers / distributors / retailers that have Fendall 2000 Non-Sterile Eyewash Cartridges should stop selling, shipping, and using the product immediately and destroy or dispose of it. Customers with questions regarding this recall can contact Honeywell Safety Products USA, Inc. by telephone.

Risk Statement: Use of or exposure to the eyewash without seeking medical attention afterwards could result in a range of ocular infections such bacterial keratitis or endophthalmitis. Immunocompromised individuals, those sustaining ocular injuries that damage the corneal epithelium, and those sustaining penetrating ocular injuries are at higher risk of potential infection.

Company name: Honeywell Safety Products USA
Brand name: Fendall 2000
Product recalled: Non-Sterile Eyewash Cartridge
Reason of the recall: Non-compliance with current good manufacturing practice (cGMP) requirements.
FDA Recall date: April 05, 2024

Source: www.fda.gov
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#recall #drugs #us

Honeywell Non-Sterile Eyewash Cartridge - recalled due to Non-compliance photo #1
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J

I received a ring instead of clothes, Taupō 3330, New Zealand

1 week ago •reported by user-jttn3275

I ordered from the company GRA very confused.
Ordered from a clothing company and instead of sending me clothes they sent me a Dimond ring? Looks very fake. The company name is GRA and on the card they sent it says they have a certificate but doesn’t … See More
look legit turns out this happend to heaps of others very concerned should I be worried?
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#scam #onlineshopping #gramoissaniteringscam #delivery #onlinescam

I received a ring instead of clothes photo #1
3
P

I bought Daisy by Marc Jacobs from Amazon and it was FAKE!!!, Greenwood, LA, USA

1 week ago •reported by user-pwgt4515

I bought Daisy by Marc Jacobs from Amazon and it was FAKE!!! I went and looked at the other perfume I have bought also and to my HORROR THOSE ARE FAKES AS WELL!!! BEWARE!!!
I checked my perfume that I paid a lot of money for from … See More
Amazon and it was a fake and upon checking my other perfume.. they are all fake!!!  | Symptoms: Other
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#amazon #falseadvertising #greenwood #louisiana #us

I bought Daisy by Marc Jacobs from Amazon and it was FAKE!!! photo #1
9
F

I received a necklace from this address that I did not order, Ohio, USA

2 weeks ago •reported by user-fxnmz821

I ordered 2 mattresses on March 10- the tracking has not updated since the order but I was charged immediately for them. I go to the mailbox today and find a gold necklace that I have not ordered.

I have been waiting on 2 mattresses for nearly … See More
a month that does not have updated tracking information but I was charged for.
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#onlineshopping #scam #delivery #onlinescam #ohio #us

I received a necklace from this address that I did not order photo #1
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