Luckin Coffee rose from zero to challenging Starbucks across China in just 18 months, opening over 4,500 stores and achieving a $4.2 billion Nasdaq valuation — built on a growth story that turned out to be largely fabricated. An internal investigation revealed that Luckin’s COO had manufactured approximately 2.2 billion yuan ($310 million) in fictional transactions throughout 2019, inflating the company’s revenues to attract investors and sustain its impossible-looking growth trajectory. Luckin was delisted from Nasdaq, its stock crashed 80% in a single session, and the scandal sent shockwaves through the market for Chinese companies seeking US listings.
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