Luckin Coffee Inc.’s shareholders voted to dismiss its chairman Charles Zhengyao Lu, days after the board of directors failed to do so.
Luckin Coffee announced Wednesday that an internal investigation of its financial misconduct found the company inflated its 2019 net revenue by approximately 2.12 billion yuan ($300 million).
Chinese coffee chain Luckin Coffee’s Chairman Charles Zhengyao Lu has faced criminal charges based on evidence of his involvement in financial scandals and the company’s internal investigation, local media reported on Wednesday.
While Fraud-hit Luckin Coffee Shares will be suspended from Nasdaq, Luckin Coffee continues to provide quality products and services to its customers.
Luckin Coffee shares took a 36% dive on Wednesday after the company resumed trading on Nasdaq, following a delisting notice from the exchange on grounds of financial fraud.
Chinese coffeehouse chain Luckin Coffee fired its CEO and COO amid an investigation into the company’s accounting scandal.