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China s Luckin Coffee to pay $180 million fine in fraud case
by Elaine Kurtenbach, The Associated Press
Posted Dec 16, 2020 11:16 pm EDT
Last Updated Dec 16, 2020 at 11:26 pm EDT
China’s Luckin Coffee has agreed to pay a $180 million penalty to settle accounting fraud charges, the Securities and Exchange Commission says.
The SEC charged the company with defrauding investors by misstating its revenue, expenses, and net operating loss to appear to have been more profitable and growing faster than it actually was, and to meet the company’s earnings estimates.
The Chinese rival to Starbucks fabricated more than $300 million in retail sales, the SEC said in a statement. It said the misconduct continued from April 2019 until January 2020.