Luckin coffee’s chief operating officer fabricated as much as 2.2 billion yuan ($310 million) in 2019 sales
Luckin Coffee Inc (LK) currently trades at $8.24 and has fallen by 70% today. Luckin Coffee disclosed Thursday that an internal investigation has found that its chief operating officer fabricated 2019 sales by about 2.2 billion yuan ($310 million). The investigation found that Jian Liu, Luckin’s chief operating officer, and several employees who reported to him, had engaged in misconduct, including fabricating sales. Liu and the employees implicated in the misconduct have been suspended, and Luckin said it will take legal action against those responsible.
Based on this information, investorsQ rates this stock 1 out of 10. We give it this rating based on current information such as Muddy Waters Research said in January that it bet against the stock in light of what it described as fraud and a “fundamentally broken business.” The high forecast for Luckin Coffee Inc is $5.60 and the low is $4.00. Notably, the company’s market cap is $2.10 billion with a 52 week high of $51.38 and a 52 week low of $4.90.