Luckin Coffee gets NASDAQ delisting notice over sales fraud
The chain recently fired its CEO and COO.
Luckin Coffee is being delisted by the Nasdaq stock exchange, more than a month after the latter suspended the upstart coffee chain due to its recent accounting scandal.
The three-year-old company, which raced to open 6,500 across China, said it received a notice from Nasdaq that its shares were being pulled.
According to Luckin, once touted as Starbucks’ rival in the country, Nasdaq cited “public interest concerns” following the company’s recent accounting scandal which sent shares plummeting 83%.
Per the company’s report, sales between the second and fourth quarters of 2019 were exaggerated by US$310 million.
Luckin’s board earlier fired both chief operating officer Liu Jian and company founder and CEO Jenny Qian. The coffee chain plans to appeal Nasdaq’s decision and says it will remain listed whilst pending an outcome of its request, which could take more than a month.
