Luckin Coffee just settled with the SEC for a fine which I guess will be paid by shareholders. Given that the whole thing is a massive admitted fraud being paid by "shareholders" is a pretty moot case. There is not much evidence that the shareholders have anything left. Other than any part of the fine that might be distributed to them I doubt the shareholders ever get a penny.
Whatever: this prompted a twitter debate about the fine paid by General Electric after their long-term-care debacle.
This tweet by Francine McKenna is where it started.
I disagree sharply.
To put it in perspective, Luckin pays $180 million fine for faking $300 million in rev. $GE's lack of disclosure of bad accounting and deceptive manipulation of estimates that led to $24 billion in write-downs should have cost them nearly $15 billion, not $200 million.— Francine McKenna (@retheauditors) December 16, 2020
“While there are challenges in our ability to effectively hold foreign issuers and their officers and directors accountable to the same extent as U.S. issuers and persons, we will continue to use all our available resources to protect investors when foreign issuers violate the federal securities laws,” said Stephanie Avakian, director of the SEC’s division of enforcement, in the regulator’s announcement on Luckin.