Luckin Coffee Gets Notice to Delist from Nasdaq over Fabricated Sales Information Scandal
Posted on 05/19/2020
Once backed by sovereign wealth funds like GIC Private Limited, scandal plagued Luckin Coffee Inc. announced that on May 15, 2020, it received a written notice from the Listing Qualifications Staff of The Nasdaq Stock Market LLC indicating that the Listing Qualifications Staff has determined to delist the company’s securities from Nasdaq. According to the filing, “The Listing Qualifications Staff cited two bases for the delisting determination: (i) public interest concerns as raised by the fabricated transactions disclosed by the Company in a Form 6-K on April 2, 2020, pursuant to Nasdaq Listing Rule 5101; and (ii) the Company’s past failure to publicly disclose material information, citing a business model through which the previously disclosed fabricated transactions were executed, pursuant to Nasdaq Listing Rule 5250.”
Luckin Coffee plans to timely request a hearing before a Nasdaq Hearings Panel (the “Panel”). Luckin Coffee will remain listed on Nasdaq, pending the outcome of the hearing.