Luckin Coffee Board to Meet on Removing Chairman
The saga that is Luckin Coffee (NASDAQ: LK) has taken yet another turn.
On Friday, the China-based company issued a press release stating that its board of directors aims to remove Charles Zengyao Lu as its chairman and board member, in accordance with its articles of association. The board has scheduled a meeting for next Thursday, July 2, to consider -- and presumably vote on -- the proposal.
Lu's resignation has been requested by a majority of the board's members. It is based on recommendations from the board's special committee, which in turn stems from an internal investigation on the company's accounting scandal. The company's COO at the time, Jian Liu, allegedly inflated the company's 2019 revenue by the equivalent of around $309 million. This was the matter that tarnished the company's reputation.
Source Fool.com
