Luckin Coffee plunged Wednesday as trading resumed for the first time since shares were halted on April 7.
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The Xiamen, China-based beverage chain received a delisting notice from Nasdaq on Tuesday, more than a month after its April 2 announcement that its chief operating officer had fabricated as much as $310 million in sales last year. The company has not yet released its fourth-quarter results for 2019.
Luckin Coffee did not immediately respond to FOX Business’ request for comment.
Luckin priced its initial public offering at $17 a share on May 16, 2019. Shares rallied to a high of $50.02 on January 17, giving the Starbucks challenger a market capitalization of as much as $12.02 billion. Its value has since plummeted to $681 million, including Wednesday’s selloff.
Luckin’s resumption of trading comes amid calls for the U.S. to get tougher on Chinese companies listed on American stock exchanges. Currently, Chinese firms are not subject to the same investor-protection rules and accounting standards as U.S. companies.