Shares of Chinese beverages chain Luckin Coffee (LK) collapsed on Thursday, plummeting 76% to new all-time lows. They did so as the company revealed that several key employees had engaged in accounting fraud including a substantial overstatement of the company's sales. It's a crushing development for the company that many shareholders had hoped would become the "Starbucks (SBUX) of China".
Here is part of Luckin's SEC filing describing the wrongdoing:
The Special Committee today brought to the attention of the Board information indicating that, beginning in the second quarter of