Starbuck’s major rival in China, beverage chain Luckin coffee, released on Thursday a preliminary self-investigation financial report disclosing an RMB 2.2 billion worth of falsified sales in 2019, misconducted by its COO Liu Jian and several employees subordinate to him. A number of US law firms have launched investigations against the company followed an anonymous report tweeted by short-seller Muddy Water in February, alleging and elaborating its stances of fraudulent operation, which may result in further admissions of fabricated transactions.
