The stock price of Chinese Starbucks rival Luckin Coffee plummeted by over 70% Thursday, shaving $5 million off its market value, after the Nasdaq-listed company disclosed that its former chief operating officer had fabricated sales figures in 2019.

Following an internal investigation, the coffee chain found that its former COO Jian Liu and several employees who reported to him had engaged in misconduct, including fabricating sales in 2019 to the tune of around 2.2 billion yuan ($310 million). Luckin also announced that investors should not rely on financial statements and earnings reports from the first three quarters of last year.

Since it was founded two and a half years ago, Luckin Coffee has opened over 4,500 locations in China and expanded into tea and juice shops. The company grew quickly by offering steep discounts and building an extensive network of small order-to-go locations. In May, Luckin raised $561 million with its U.S. initial public offering. (Image: From @CGTN on Weibo)