LKNCY - Luckin Coffee Fraud
Luckin Coffee (Luckin) (LK) (LKNCY) has taken the spotlight as the largest and perhaps most audacious Chinese fraud yet. On April 2, Luckin said that Chief Operating Officer Jian Liu and some subordinates might have faked more than $300 million in revenue, more than a quarter's worth of reported sales. Luckin's NASDAQ traded stock collapsed from $50 per share to $3 per share and faces likely delisting.
The company says the fraud was in three quarters of 2019. If the fraud extends to 2018, it could mean the original IPO was fraudulent with serious consequences