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US-China tensions

Luckin Coffee to pay $180m penalty to settle accounting fraud charges: US SEC

China-based rival to Starbucks had said much of its 2019 sales were fabricated

Customers wearing face masks are seen inside a Luckin Coffee store in Beijing on April 16.   © Reuters

Luckin Coffee Inc has agreed to pay a $180 million penalty to settle accounting fraud charges for "intentionally and materially" overstating its 2019 revenue and understating a net loss, U.S. regulators said on Wednesday.

The U.S. Securities and Commission (SEC) fine on the China-based rival to Starbucks comes after it said earlier this year that much of its 2019 sales were fabricated, sending its shares plunging and sparking an investigation by China's securities regulator and the SEC.

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