Luckin Coffee, touted as China’s answer to Starbucks, has been told to delist from the Nasdaq stock exchange because of fabricated transactions that have undermined trust in Chinese financial reporting, reported the South China Morning Post.
According to a statement on Tuesday, the Xiamen-based start-up received a written notice from New York’s Nasdaq exchange on Friday, “indicating that the listing qualifications staff has determined to delist the company’s securities.”
The decision was based on “public interest concerns” over recently disclosed fabricated transactions by company staff, as well as Luckin Coffee’s past failure to publicly disclose information, it said.
Luckin Coffee – which was founded in 2017 and listed in 2019 – plans to request a hearing to appeal the decision and will remain listed on the Nasdaq bourse pending the outcome of that, it said. A hearing is usually scheduled within 45 days of the request.