Luckin Coffee Ousts Chairman Amid Accounting Scandal

Luckin Coffee appointed a new chairman and directors to its board following an amazing typical assembly held Monday.

Performing main govt officer and current board member, Jinyi Guo, has been appointed the chairman and the CEO of the Chinese coffee chain business.

Charles Zhengyao Lu, the former chairman and co-founder of Luckin, ceases to be a director.

The ouster of Lu comes weeks immediately after an previously try to do the similar unsuccessful to get adequate votes at a board assembly.

It was documented previously that Lu was in the know of a $310 million securities fraud at Luckin, which led to an investigation conducted by the company’s board and legislation firm Kirkland & Ellis.

It is alleged that Lu did not absolutely cooperate with the investigations.

Previously in June, Lu and Luckin board members tried out to oust each other immediately after the Beijing-based mostly business bought delisted from Nasdaq in the wake of the fraud. Luckin did not contest the delisting.

Luckin also appointed two new impartial directors on Monday. An additional two directors ended up named previously on July five, famous CNBC.

On Monday, Luckin Coffee OTC shares traded 22.04% reduce at $2.90.

This story originally appeared on Benzinga.

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