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2020-05-20 09:11:19

Luckin Coffee, once touted as the heir apparent to Starbucks in China, has received a notice of delisting from the Nasdaq Stock Market. The Chinese beverage chain announced Tuesday that it has appealed the decision, meaning it can continue trading pending the outcome of a hearing.

The notice came around a year after Luckin filed its initial public offering in the United States. Nasdaq’s decision was based on “past failure to publicly disclose material information” as well as “public interest concerns” over fabricated sales data by the company’s former chief operating officer amounting to 2.2 billion yuan ($310 million). The company disclosed the fraudulent figures in early April.

In the aftermath of the scandal, Luckin last week fired its chief executive officer and chief operating officer. The company’s founder and chairman, Lu Zhengyao, remains untouched for now. (Image: People Visual)