Luckin Coffee Fires CEO In Fraud Scandal
Jenny Zhiya Qian, the CEO, and chief operating officer Liu Jian were terminated from their positions as part of an internal investigation into fabricated transactions.
It was revealed that Liu may have faked 2.2 billion yuan ($310 million) worth of sales in 2019.The disclosure caused the company's shares to sink by more than 70 percent in the NASDAQ stock exchange in New York.
Another accusation includes Luckin inflating its net selling price per item—traced to 25,843 customer receipts—by 12.3 percent to artificially sustain its business model. The document states the store level loss is 24.7–28 per