Bloomberg
Luckin to Pay $180 Million to End SEC Probe After Collapse
(Bloomberg) — Luckin Coffee Inc.’s collapse from a stunning accounting scandal has prompted a stiff price tag from U.S. regulators: $180 million.The Chinese coffee chain intentionally fabricated more than $300 million in sales from at least April 2019 through January of this year, according to the Securities and Exchange Commission, which announced the fine and a settlement with the company in a Wednesday statement. To conceal the fraud, certain employees created a fake operations database, and altered bank records to reflect the bogus sales, according to the SEC.Luckin’s alleged malfeasance, which involved misstating its revenue, expenses and operating loss, was all done to give investors the false impression that the company was experiencing miraculous growth, the agency said. The facade came crashing down in April when Luckin said that its chief operating officer and some subordinates might have faked more…
