Formal admission came in a filing with the US Securities and Exchange Commission.
While Luckin parts ways with its top executives, Tim Hortons receives an investment from Tencent to help increase its bricks-and-mortar presence in China.
Publicly-traded Chinese brands in the US are now are facing a stricter review process and waning investor interest after a short seller helped uncover fraudulent sales at rapidly-expanding Luckin Coffee.
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