Louis Dreyfus Could Be Hit By Luckin Coffee’s Stock Plunge (1)

Crop trading giant Louis Dreyfus Co. could face collateral damage from a potential accounting scandal unfolding at Luckin Coffee Inc.

Dreyfus invested about $50 million in the Chinese company last year. It also partnered with Luckin on a coffee roasting plant in China and a juice joint venture.

Luckin stock plunged as much as 81% on Thursday after the company said its board is investigating reports that senior executives and employees fabricated transactions totaling 2.2 billion yuan ($310 million).

Luckin, China’s Starbucks Rival, Plunges on Accounting Probe

“Certain costs and expenses were also substantially inflated by fabricated transactions during this ...