Chinese-based Luckin Coffee, a pioneer in self-service coffee machines in addition to being a coffee shop chain, is one of 43 companies facing a $9 million fine in connection with falsifying financial records and misleading the public, according to Nasdaq.
China's finance ministry found earlier this year that Luckin, which has been Starbucks' top competitor in China over the past couple of years, had reported 2.25 billion yuan of sales through fake coupons from April 2019 to the end of 2019. The investigation, which resulted in Lukcin's desliting from New York's Nasdaq and the firing of several executives, also found that the coffee chain had inflated other figures including revenue, costs and profit.
Luckin, which was founded in 2017, did not respond to FastCasuals' request for comment.
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