Luckin Coffee Starts Trading Again
High-flying coffee house company Luckin Coffee (NASDAQ: LK) is once again trading on the Nasdaq, after the stock had been halted for over six weeks. Shares of the incredible growth stock came crashing down when it was revealed in April that company insiders had engaged in massive fraud in reporting the company's numbers.
Luckin last reported $200 million in revenue in its most recent quarter, with incredible sales growth of 557%. Those numbers were indeed too good to be true. The company has since revealed that its chief operating officer, Jian Liu, and several other employees fabricated sales of over $319 million in 2019. The stock dropped almost 80% in a day when the news came out.
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Source Fool.com
