LK - China raps Luckin Coffee with $9M fine after large-scale fraud

Delisted Luckin Coffee (LK) was fined by China's top commerce regulator after being found to have forged merchandise vouchers to inflate sales. The regulator said 43 companies helped Luckin inflate sales, expenses and operational data between April and December 2019. The total fines of 61M yuan ($9M) was a pittance compared to the investors losses in Luckin.Luckin operates fewer stores in China than it did before the scandal, although it is still considered a challenger to Starbucks (SBUX) in some markets.

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China raps Luckin Coffee with $9M fine after large-scale fraud