China’s Luckin Coffee Scandal Renews US Call for Stricter Oversight

Posted on May 20, 2020 3:07 pm

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Luckin Coffee Inc., a Chinese coffee retail chain listed on the Nasdaq, confirmed this week it has received notice that it will be delisted from the U.S. stock exchange after it acknowledged falsifying $310 million in sales.

Analysts say the action is a blow to all Chinese companies, and comes as U.S. lawmakers consider imposing new regulations on Chinese companies seeking American investment.

Luckin, an upstart rival to Starbucks Corp. in China, said in a regulatory filing on Tuesday that it has received written notice from Nasdaq’s listing qualification staff on May 15 that it would be dropped. The company said the