Look like they are doing the same stupid trick again.
They gave massive sales to boost membership and sales number. Or gave free coffee and mark as sales.
Then used the statistics to hoodwink investors. Temasek was one of them. After it was uncovered, the shares dropped 80 percent.
From AI
The Luckin Coffee scandal involved significant accounting fraud, where the company inflated its revenue figures by over $300 million. This fraudulent activity was first brought to light by Muddy Waters Research through a detailed report, which caused a dramatic decline in Luckin Coffee's stock price. After the fraud was exposed, Luckin Coffee's shares plummeted by 81%, and it was ultimately delisted from the Nasdaq stock exchange in June 2020 [[❞]](https://www.sec.gov/news/press-release/2020-319) [[❞]](https://integrityforensic.com/the-luckin-coffee-scandal-an-analysis-of-the-largest-accounting-fraud-in-china/).
The scandal had far-reaching consequences, including numerous lawsuits from investors and a substantial penalty. Luckin agreed to pay a $180 million penalty to settle charges from the U.S. Securities and Exchange Commission (SEC), which alleged that the company had fabricated more than $300 million in retail sales [[❞]](https://www.sec.gov/news/press-release/2020-319). The company faced severe repercussions, including the termination of top executives and a major restructuring of its business practices [[❞]](https://integrityforensic.com/the-luckin-coffee-scandal-an-analysis-of-the-largest-accounting-fraud-in-china/).
This scandal serves as a cautionary tale about the importance of transparency and integrity in financial reporting and the severe implications of misleading investors.
