Why Luckin Coffee Stock Dropped 30% Today

Shares of Luckin Coffee (NASDAQ: LK) plummeted on Friday as myriad negative factors continued to weigh on the beleaguered Chinese coffeehouse chain.

As of 1:36 p.m. EDT, Luckin's stock was down more than 30%.

Luckin Coffee's stock crashed in April after the company disclosed that it was investigating its chief operating officer for allegedly inflating sales by hundreds of millions of dollars. Several weeks later, Luckin fired COO Jian Liu and CEO Jenny Zhiya Qian due to their alleged roles in the scandal.