The SEC and Luckin said the company had not admitted to or denied the allegations but agreed to a settlement, subject to court approval, that includes the payment of a $180 million penalty. The U.S. market watchdog says China's Luckin Coffee has agreed to pay a $180 million penalty to settle accounting fraud charges. The U.S. market watchdog says China's Luckin Coffee has agreed to pay a $180 million penalty to settle accounting fraud charges. The SEC charged the company with defrauding investors by misstating its revenue, expenses, and net operating loss to appear to have been more profitable and … "The Company's Board of Directors and management are committed to a system of strong internal financial controls, and adhering to best practices for compliance and corporate governance," Guo added. "Public issuers who access our markets, regardless of where they are located, must not provide false or misleading information to investors," SEC Director of Enforcement Stephanie Avakian said in a statement. China’s Luckin Coffee has agreed to pay a $180 million penalty to settle accounting fraud charges, the Securities and Exchange Commission says. China’s Luckin Coffee has agreed to pay a $180-million penalty to settle accounting fraud charges, the Securities and Exchange Commission says. Luckin Coffee Inc. has agreed to pay $180 million to settle regulatory claims that it cooked its books to make growth appear more robust and meet earnings targets. Founded in June 2017, Luckin had one of the most successful U.S. IPOs by a Chinese company last year, attracting interest from prominent U.S. investors, including long-only funds and hedge funds. The SEC said the China Securities Regulatory Commission and the Swiss Financial Market Supervisory Authority also cooperated with the investigation. The U.S. Securities and Commission (SEC) fine on the China-based rival to Starbucks comes after it said earlier this year that much of its 2019 sales were fabricated, sending its shares plunging and sparking an investigation by China's securities regulator and the SEC. Luckin has not admitted or denied the charges, the SEC said. All rights reserved. Most of its stores are small "pick-up" locations in office buildings or college campuses that serve for online orders' pickup and delivery. (AP Photo/Mark Schiefelbein). Luckin said the settlement would allow the company to continue with its business strategy after cooperating with the SEC and making remediation. China’s Luckin Coffee has agreed to pay a $180 million penalty to settle accounting fraud charges, the Securities and Exchange Commission says Thursday, Dec. 17, 2020. Further, the SEC alleges that during the period of the fraud, Luckin raised more than $864 million from debt and equity investors. China's Luckin Coffee to pay $180 million penalty to settle accounting fraud charges. New York (CNN Business) China's Luckin Coffee (LK) had hopes of being as successful with American investors as its rival Starbucks. Luckin opened its first store in Beijing several years ago, challenging Starbucks’ stronghold in the Chinese market by delivering coffee ordered using a mobile phone app. Dive Brief: The Securities and Exchange Commission charged China-based Luckin Coffee with misstating its revenue, expenses and net operating loss to make it look like it was growing faster than it was. All rights reserved. China’s Luckin Coffee has agreed to pay a $180 million penalty to settle accounting fraud charges, the Securities and Exchange Commission says.The SEC charged the company with defrauding investors by misstating its revenue, expenses, and net operating loss to appear to have been more profitable and … The SEC charged the company with defrauding investors by misstating its revenue, expenses, and net operating loss to appear to have been more profitable and … NEW YORK - US securities regulators fined China's Luckin Coffee $180 million for defrauding investors over its financial performance, officials announced Wednesday. Chinese coffee chain Luckin Coffee was listed in the U.S. last year. China’s Luckin Coffee has agreed to pay a $180 million penalty to settle accounting fraud charges, the Securities and Exchange Commission says. Luckin Coffee Inc. (Chinese: 瑞幸咖啡; pinyin: Ruìxìng Kāfēi) is a Chinese coffee company and coffeehouse chain. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Got a confidential news tip? The amount could be offset by payments made to its investors as a result of bankruptcy and restructuring proceedings under way in the Cayman Islands. In early January, its share price was about $50. The company was founded in 2017 and is based in the southeastern city of Xiamen, according to its website. The SEC charged the company with defrauding investors by misstating its revenue, expenses, and net operating loss to appear to have been more profitable and growing faster than it actually was, and to meet the company’s earnings estimates. The SEC said it found that Luckin "intentionally and materially overstated its reported revenue and expenses and materially understated its net loss in its publicly disclosed financial statements in 2019.". Luckin Coffee Inc.’s collapse from a stunning accounting scandal has prompted a stiff price tag from U.S. regulators: $180 million. People wearing face masks walk by a Luckin Coffee store on June 29, 2020 in Yichang, Hubei Province of China. The Securities and Exchange Commission today charged China-based company Luckin Coffee Inc. with defrauding investors by materially misstating the company’s revenue, expenses, and net operating loss in an effort to falsely appear to achieve rapid growth and increased profitability and to meet the … They now trade on the OTC Pink board, or Pink Open Market, the most speculative tier for trading of over-the-counter stocks. During the time the fraudulent accounting was occurring, the company raised more than $864 million from debt and equity investors, the SEC complaint alleged. Luckin Coffee planned to reach 10,000 locations by the end of next year in a market valued at $5.8 billion. The company was founded in 2017 and is based in the southeastern city of Xiamen, according to its website. 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