Luckin Coffee is preparing a U.S. relisting five years after finance fraud scandal

Luckin Coffee could beryllium returning to the Nasdaq 5 years aft the institution was delisted owed to fiscal fraud. Jinyi Guo, the CEO of the mobile-only Chinese java chain, said astatine a caller authorities lawsuit successful Xiamen that the institution is preparing to relist connected the U.S. banal marketplace and grow its footprint successful America arsenic well.

Chinese media reports that Guo said erstwhile the institution is relisted connected the Nasdaq, it volition assistance Luckin go a much planetary hub for improvement and business. 

"The institution remains committed to the U.S. superior markets, but determination is presently nary definitive timeline for relisting connected a large exchange,” Luckin Coffee said successful a connection sent to media. “Our apical precedence astatine this clip is to absorption connected strategical execution, deepen operational development, and proceed to heighten marque power and marketplace competitiveness."

In May 2020, 1 twelvemonth aft making its Wall Street debut, Luckin Coffee received a Nasdaq banal marketplace delisting announcement pursuing their announcement of an probe into fraud allegations.  According to the investigation, aggregate executives fabricated financials and failed to disclose definite fiscal information. As a result, the company’s CEO Jenny Zhiya Qian and COO Jian Liu were terminated. Luckin initially fought the delisting notice, but yet dropped its appeal, and the institution was taken disconnected the Nasdaq ticker successful June 2020. 

Currently, the java marque — which overtook Starbucks arsenic the apical java concatenation successful China 2 years agone — has 5 stores successful the U.S., each located successful New York City. Guo has said that much U.S. locations, with menus tailored to American consumers, are connected the mode successful 2026.