Luckin Coffee Inc.
issued a statement Monday stating it “unconditionally rejects all allegations” made in an anonymous report that claims the business is fabricating monetary and running figures. “The method of the report is flawed, the evidence is unverified, and the accusations are unsupported speculations and harmful analyses of events,” the statement says. The report, received by short seller Muddy Waters Research study, was revealed on Friday MarketWatch might not verify the credibility of the report, however Luckin Coffee attends to a number of claims it says remain in it, including one that says the products per shop per day number was inflated in the 3rd and fourth quarters of2019 “Every order that clients placed with Luckin Coffee is online and instantly tape-recorded in its system, and payments for orders went through third-party payment service providers,” Luckin composes. “Therefore, all the company’s key operating information, including the variety of products per store each day, products per order and reliable market price, are tracked in genuine time and can be confirmed.” Citron Research study, also called a short seller, tweeted on Friday that it also received the report and thinks it will “fall short on precision.” Luckin goes on to say that it “strongly waits its service design.” Luckin stock closed Friday down 10.7%, however it has recuperated 2.5%in Monday premarket trading. Luckin stock has increased 69%over the last 3 months, exceeding the benchmark S&P 500 index.
which is up 5.2%.