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Luckin Coffee Drops Stock Market Delisting Appeal Following Fraud Scandal

From: nrn.com

Luckin Coffee announced Friday that the company had withdrawn its request for a Nasdaq hearing, a months after the stock market announced that it was issuing the China-based coffee company a delisting notice following a fraud scandal that resulted in fabricated financial numbers. As a result, the company’s shares will be removed from the Nasdaq stock market on June 29 at the start of the business day, just 13 months after the company had initially made its debut on the stock market, with an IPO worth $561 million.

On the same day that they announced their appeal withdrawal, the company announced that Luckin’s board of directors, had submitted a proposal to require its chairman of the board, Charles Zhengyao Lu, to resign. The proposal would be voted on July 5 during an emergency general meeting of shareholders, and if approved, Zhengyao Lu would be one of a string of Luckin Coffee executives that have resigned in the wake of the scandal, including the company’s CEO Jenny Zhiya Qian, COO Jian Liu,  senior vice president Wenbao Cao and vice president Gang Wu.

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