Luckin is facing the fraud investigation from the US shareholders
Posted On March 6, 2020
Following an anonymous report tweeted by short seller Muddy Waters Research alleging several instances of fraud, Luckin is on the brink of a lawsuit due to the claimed accusation of an inflated number of sales items per store per day, which was later denied by Luckin. This can be another hard blow to the Chinese leading beverage chain on top of a dramatic market downturn as a result of the coronavirus outbreak. Its US rival Starbucks’ expects China sales in stores opened for at least a year to drop by about 50% in the quarter ended March.