Luckin Coffee (NASDAQ:LK) stock collapsed Thursday after the China-based coffee house chain said that it has launched an investigation into "fabricated sales" reports that could have totalled more than $300 million.
At 9:50 AM ET (1350 GMT), shares traded 69% lower at $8.09.
The Nasdaq-listed company suspended its chief operating officer, among others, for misconduct related to the fabricating of transactions.
The company said it's assessing the impact of the investigation into the fake sales, which it traces back to the second quarter of 2019, and cautioned investors that they can no longer rely on the company's prior guidance.
