Charles Zhengyao Lu.
VCG | fake pictures
Luckin Coffee announced on Friday that its board of directors is moving to oust director and president Charles Zhengyao Lu after an internal investigation into a financial scandal.
A meeting will be held July 2 to consider the proposed removal of the resignation, according to a company statement.
The proposal was requested by the majority of the board directors and was based on the findings and recommendations presented by a special committee, according to Luckin. The Chinese coffee chain said the special committee based its recommendation on the evidence gathered through an ongoing internal investigation and on Lu’s level of cooperation during the investigation.
Luckin previously announced an internal investigation in May, saying a top executive manufactured and overestimated up to 2.2 billion yuan ($ 311.5 million) in 2019 sales.
The announcement earned the company a notice to remove it from Nasdaq’s list. Luckin received a second foreclosure notice last week after she was unable to file her annual report.
Luckin’s shares rose more than 1% in extended trading.
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