Deals
Luckin Coffee Scandal Deals New Blow to Corporate China
- Board probing whether chief operating officer made up sales
- Damage spreads to CAR Inc., founded by Luckin’s chairman
People wearing protective masks gather outside a Luckin Coffee Inc. outlet in Shanghai, on April 3.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
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The fallout from Luckin Coffee Inc.’s accounting scandal is spreading far beyond the high-flying Starbucks challenger, with renewed concerns about Chinese corporate governance dragging down stocks across industries and threatening to bring a halt to the country’s overseas initial public offerings.