Luckin Coffee (OTCMKTS:LKNCY) is in the news Monday after settling a dispute with the U.S. Securities and Exchange Commission caused shares of LKNCY stock to soar higher.
Luckin Coffee reached a settlement with the SEC last week that has it paying a $180 million fine to the agency. This is in connection to more than $300 million in fraudulent sales reported by the company earlier this year.
It’s worth noting that Luckin Coffee’s balance sheet has survived its tussle with the SEC. That’s likely due to it raising more than $864 million from debt and equity investors during the period when the fraudulent activity was taking place, reports Seeking Alpha.
With the SEC business cleared up, investors are taking an interest in LKNCY stock again. As of this writing, some 5 million shares of the stock have changed hands. For some perspective, the company’s daily average trading volume is 4.66 million shares.
LKNCY stock was up 5.1% as of Monday morning and is up 162% since news of its SEC settlement broke.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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