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Luckin Chairman and Board Members Try To Oust Each Other After Giving Up On Nasdaq Listing

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Luckin Chairman and Board Members Try To Oust Each Other After Giving Up On Nasdaq Listing

Luckin Coffee Inc. (NASDAQ: LK) Chairman and board members are trying to oust each other in the aftermath of the accounting scandal, as revealed in multiple filings with the United States Securities and Exchange Commission.

What Happened

The Chinese coffee chain company's board of directors voted to require Chairman and Director Charles Zhengyao Lu to resign from his role, and a meeting will be held on Thursday to consider the proposed resignation and removal.

It was "requested by the majority of directors" on Luckin's board, based on the company's internal investigation into a $310 million securities fraud unveiled in April, it said.

The chairman, Lu, has separately decided to convene an "Extraordinary General Meeting" on the coming Sunday, where the shareholders will vote on removing Sean Shao, an independent director on the Starbucks Corporation (NASDAQ: SBUX) competitor's board.

According to the SEC filing, Lu expressed "concerns of potential disruption to the ongoing internal investigation considering Shao currently serves as the chairman of the Special Committee of the Board."

Luckin earlier on Friday said it was not going to request a hearing from Nasdaq Stock Market, ahead of its shares getting delisted from the exchange desk on Monday.

Price Action

Luckin shares closed 54% lower at $1.38 on Friday.

Image via Flickr

 

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Posted-In: China Coffee Companies NASDAQ securitiesNews Penny Stocks Legal Management Best of Benzinga

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