Nasdaq to delist Luckin Coffee
Luckin Coffee Inc said on Tuesday that Nasdaq Inc has given it notice that it plans to delist it from the US stock exchange a month after the Chinese coffee chain disclosed that some of its employees fabricated sales accounts.
Luckin said that it plans to request a hearing before a Nasdaq panel. The Chinese coffee chain will remain listed on the Nasdaq until the panel decides on an outcome.
Hearings typically occur between 30 and 45 days after they are requested.
It is unclear if the coronavirus pandemic will slow down that timeline.
The company disclosed on April 2 that an internal probe found that Jian Liu, its COO at the time, had fabricated 2019 sales.
Trading of Luckin shares on the Nasdaq has been halted since April 7 for pending news.
Its shares had plummeted 83% since disclosing the fraud, putting its market value at $1 billion.