Luckin Coffee Office Raided as China Regulators Probe Fraud at Starbucks Rival

Luckin Coffee Inc. (LK) confirmed Monday that it its being investigated by market regulators in China as its Nasdaq-listed shares continued to be suspended following revelations earlier this month that it may have “fabricated sales” reports that could have totaled more than $300 million of more than $300 million.

The China-based rival to Starbucks said it was “actively cooperating” with the State Administration for Market Regulation in Beijing after it reportedly raided the company’s headquarters over the weekend.

The statement followed a move by the China Securities Regulatory Commission earlier this month to investigate fraud claims linked to Luckin’s  April 2 admission that around RMB2.2 billion ($310 million may bane been fabricated in a scheme linked to its former chief operating officer.

The Nasdaq, meanwhile, said Monday that shares in the group remain halted, following their first cessation on April 6,

www.thestreet.com/investing/luckin-coffee-offices-raided-as-china-regulators-probe-fraud