Luckin Coffee moves to remove chairman after accounting scandal – CNBC

Charles Zhengyao Lu.

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A meeting will be held July 2 to consider the resignation elimination proposition, according to a company declaration..

Luckin shares were up more than 1% in prolonged trading..

The statement earned the business a de-listing notice from Nasdaq. Luckin got a second de-listing notice last week after it failed to submit its yearly report.

Luckin Coffee revealed Friday that its board of directors is transferring to dislodge director and Chairman Charles Zhengyao Lu following an internal investigation of a financial scandal.

Luckin previously revealed an internal examination in May and said a magnate made and overstated as much as 2.2 billion yuan ($ 311.5 million) in 2019 sales.

The proposal was asked for by the bulk of the boards directors and based upon suggestions and findings presented by an unique committee, according to Luckin. The Chinese coffee chain said the unique committee based its suggestion on evidence gathered through an ongoing internal investigation and on Lus level of cooperation during the investigation.