Luckin Coffee Hits New Low, Faces Nasdaq Delisting

Luckin Coffee Hits New Low, Faces Nasdaq Delisting

Shares of Luckin Coffee plummeted nearly 40% as trading resumed after a lengthy halt. The dramatic drop followed a delisting notice from Nasdaq, prompted by the company’s recent admission of fabricated sales figures. In January, Luckin’s share price peaked at $51.38, contrasting starkly with the current low of $2.69. This decline is largely due to revelations that certain employees had falsified sales accounts, a discovery that has severely damaged investor trust and prompted a reevaluation of listing standards by Nasdaq, particularly concerning Chinese companies. Nasdaq cited the severity of the scandal and the lack of transparency as core reasons for the delisting decision. Luckin Coffee intends to appeal the decision, maintaining its listing status until the hearing’s conclusion.

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