It didn't look pretty when Luckin Coffee (NASDAQ: LK) announced last week that after an internal investigation, it had discovered fraudulent sales. The Chinese company's stock price plunged 80% on the news after it had already dropped due to COVID-19 concerns.
But the U.S.-traded Chinese company called on customers for first-aid, and they've rallied around the coffee chain company to increase its sales.
The audit revealed that some employees in the company had embellished $310 million in sales during 2019. The company issued an apology, and Luckin chairman Lu Zhengyao said he was ashamed of what happened. He also issued a call to customers on social media to help out the newly embattled company by coming in and buying coffee. That seems to have worked.