2020: A penalty of $9 million for frauds with the reporting
In September, 2020 the Chinese network of the Luckin Coffee coffee shops and over 40 more companies involved in the case of fraud with its financial statements are fined by the regulator 61 million yuans (about 9 million dollars).
Scandal over Luckin Coffee network which in China positions itself as the main competitor of Starbucks ran high in January, 2020 after the publication in network of the report of the American trading company Muddy Waters Research which accused her of fraud.
Later Luckin Coffee and its Beijing branch which is based in the city of Xiamen (east Province of Fujian) were recognized in artificial increase in revenue in financial statements for 2019 for 2.12 billion yuans (about 312 million dollars) and also expenses - for 1.34 billion yuans (about 200 million dollars).
In June Luckin Coffee companies prohibited to place shares on the Nasdaq exchange, and a month earlier the founder of network Jannie Qiang and her chief operating officer Liu Jian were dismissed for fraud with accounting.
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