Luckin Coffee to halt trading on June 29, shares plunge 51%

Luckin Coffee announced today that it has decided to withdraw its previous request for a hearing and that trading in the company's stock will be suspended at the opening of trading on June 29, 2020.

Luckin Coffee stock plunged 51%, triggering meltdown for five times in early trading on Friday.

On May 19 of this year, Luckin Coffee announced that it had received written notice from the Listing Qualifications Staff of The Nasdaq Stock Market that the staff had decided to delist Luckin Coffee stock from the Nasdaq market.

On May 22, Luckin Coffee requested an oral hearing before the Nasdaq Hearings Panel (Nasdaq Hearings Panel) pursuant to Market Place Rule 4820.

On May 23, Nasdaq notified Luckin Coffee of a scheduled hearing date of June 25, 2020.

On June 24, Luckin Coffee notified the Listing Eligibility Staff of its decision to withdraw the foregoing request for a hearing and not seek to rescind or set aside the Listing Eligibility Staff's decision to delist its shares from the Nasdaq Global Select Market.

To that end, NASDAQ's Office of General Counsel has notified Luckin Coffee that trading in the Company's stock will be suspended at the opening of trading on June 29, 2020, and that NASDAQ will file a Form 25 delisting notice after all appeal deadlines have expired.

On April 2 of this year, Luckin Coffee announced the formation of a special committee to conduct an internal investigation into the fabricated trading practices of the company's COO, Jian Liu, and several other employees.

Luckin Coffee said a number of issues raised concerns with the board of directors during the audit of the company's consolidated financial statements for the fiscal year ended Dec. 31, 2019, and the special committee will oversee an internal investigation into those issues.

Luckin Coffee also said at the time that information had come to light that, beginning in the second quarter of 2019, COO Jian Liu and several employees reporting to him had engaged in certain misconduct, including the fabrication of certain transactions.