On July 5, Luckin Coffee (OTC:LKNC.Y) Chairman Charles Lu was seemingly ejected, along with three other directors, from the board of Luckin, the embattled Chinese coffee retailer that was recently found to have fabricated some $300 million in sales for its 2019 year. The ousting may seem odd, since Lu survived a different vote held just three days earlier to have him — and only him — removed from the board.
However, investors shouldn’t be fooled by the headline. These two voting results were probably what Charles Lu wanted, and shareholders are now unfortunately left with the same management in place that caused Luckin’s price crash in the first place.
Confused? Read on.