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Luckin Coffee Fraud Explained
In this video we explain the Luckin Coffee fraud. Luckin Coffee is a Chinese premium coffee chain. It IPOed on the US stock market in 2019 and reached a valuation of $9 billion at the peak. However, it turned out a large portion of their revenue was fake. They were exposed as a fraud in early 2020 and delisted from the NASDAQ.
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3 years ago
Of course people must always be careful when purchasing individual stocks, and further even more careful when buying ADR's like this company, especially from china. China does not view "fraud" and accounting rules the same way the United States does.
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