Luckin shareholder vote challenged over reclassification, WSJ reports » 11:4307/0707/07/20
Luckin Coffee held an…
Luckin Coffee held an extraordinary general meeting on Sunday in Beijing where its chairman and co-founder, Charles Lu, asked shareholders to vote out four of the company's eight directors, including himself, Jing Yang of Wall Street Journal reports. During the meeting, representatives of some Luckin shareholders raised objections to the proceedings and the way that votes were counted, Yang adds, citing people familiar with the matter. One sticking point was a decision by Lu to reclassify the supervoting shares of one representative to shares with weaker voting rights, sources told the Journal. An attorney who represents Lu said in a statement to Wall Street Journal: "Mr. Lu believes that he had properly conducted the meeting as the chairman in full compliance with Luckin's articles of association." Reference Link
Luckin probe says Lu 'knew or should have known' of transactions, WSJ reports » 06:1307/0607/06/20
An investigation into the…
An investigation into the accounting at Luckin Coffee has concluded that Charles Lu, the company's chairman, knew or should have known about the falsified transactions that inflated the company's sales last year, The Wall Street Journal's Jing Yang reports, citing a person familiar with the matter. A report detailing the investigation also said that Lu didn't fully cooperate with the probe, the person says. Lu, in an emailed response to a request for comment, said: "Rumor! Not true!" Reference Link
Luckin Coffee shareholders vote to remove chairman, Bloomberg reports » 15:4107/0507/05/20
Luckin Coffee's chairman, Charles Zhengyao Lu, was ousted by shareholders from the scandal-plagued Chinese company, just days after surviving an effort by some directors to strip him of control, Bloomberg reports, citing Chinese web portal 163.com. Lu's dismissal comes after Luckin said it substantially completed an internal investigation into the financial irregularities, the report notes. The company said last week its internal investigation concluded that net revenue last year was inflated by about 2.12 billion yuan while costs and expenses were boosted by 1.34 billion yuan. After the conclusion of the investigation, a majority of directors had requested Lu's resignation, the publication adds. Reference Link
|Over a week ago|
Luckin Coffee says removal of Zhengyao Lu as director not approved » 16:1007/0207/02/20
Luckin Coffee (LKNCY)…
Luckin Coffee (LKNCY) announced the following: "A meeting of the board of directors of the company was held on July 2, 2020 to consider the previously disclosed proposal based on the recommendation of the special committee of the board to remove Mr. Charles Zhengyao Lu, as a director and the chairman of the board. The resolution of the proposed removal was not approved by the affirmative vote of no less than two-thirds of the other directors present and voting at the board meeting, pursuant to Article 101 of the Articles of Association of the company. As a result, Mr. Charles Zhengyao Lu will remain a director and the chairman of the board."
Luckin: Special Committee found fabrications of transactions began in April 2019 » 09:0207/0107/01/20
Luckin Coffee announced…
Luckin Coffee announced that its Special Committee of the Board of Directors, with the assistance of its advisors, Kirkland & Ellis International LLP and FTI Consulting, has substantially completed its independent internal investigation into the issues disclosed in the press release issued by the Company on April 2, 2020. The Special Committee was formed on March 19, 2020 and authorized by the Board of Directors to access documents, records and information of the Company, and to conduct interviews with any employee, officer and director, as the Special Committee deemed appropriate. In the course of the Internal Investigation, the Special Committee and its advisors reviewed over 550,000 documents collected from over 60 custodians, interviewed over 60 witnesses, and performed extensive forensic accounting and data analytics testing. Based on its work, the Special Committee has found that the fabrication of transactions began in April 2019 and that, as a result, the Company's net revenue in 2019 was inflated by approximately RMB 2.12B. The Company's costs and expenses were inflated by RMB 1.34V in 2019. Evidence discovered to date demonstrates that the Company's former CEO Jenny Zhiya Qian, former COO Jian Liu and certain employees reporting to them participated in the fabricated transactions and that the funds supporting the fabricated transactions were funneled to the Company through a number of third parties associated with the Company employees and/or related parties. Following the Special Committee's recommendations, the Board terminated its former CEO and former COO based on evidence demonstrating their participation in the fabricated transactions. In addition, the Board resolved to require Mr. Charles Zhengyao Lu to resign as a director and the chairman of the Board and a meeting of the Board will be held on July 2, 2020 to consider the proposal to remove Mr. Charles Zhengyao Lu, as a director and the chairman of the Board. The proposed resignation and removal regarding Mr. Charles Zhengyao Lu was requested by the majority of directors of the Board, and based on findings presented by and the recommendations of the Special Committee. The Special Committee based its recommendations regarding Mr. Charles Zhengyao Lu on documentary and other evidence identified in the Internal Investigation and its assessment of Mr. Charles Zhengyao Lu's degree of cooperation in the Internal Investigation. The Board has further resolved to terminate 12 other employees who, at the direction of the former CEO and former COO, participated in, and/or had knowledge of, the fabricated transactions, including previously suspended employees. An additional 15 employees are subject to other disciplinary actions. In addition, the Company is in the process of terminating relationships with all third parties involved in the fabricated transactions. In connection with the Special Committee's findings, the Company has implemented several immediate enhancements to its finance functions and engaged an internal controls consultant to evaluate the existing controls environment and recommend enhancements to detect and prevent misconducts in the future. The Company is chartering an internal audit function to test and evaluate its control functions. The Company will also strengthen ongoing compliance training to its employees. The Special Committee may continue to perform certain additional investigation steps if additional relevant information becomes available.
Luckin Coffee board to require chairman Charles Zhengyao Lu to resign » 16:3206/2606/26/20
Luckin Coffee Inc.…
Luckin Coffee Inc. announced that the board of directors of the company, resolved to require Charles Zhengyao Lu to resign as a director and the chairman of the board, and pursuant to article 101 of the articles of association of the company, a meeting of the board will be held on July 2, 2020 to consider the proposal to remove Charles Zhengyao Lu, as a director and the chairman of the board. The Proposed Resignation and Removal was requested by the majority of directors of the board, and based on findings presented by and the recommendations of the Special Committee of the Board. The Special Committee based its recommendations on documentary and other evidence identified in its ongoing internal investigation and its assessment of Charles Zhengyao Lu's degree of cooperation in the internal investigation.
Luckin Coffee withdraws request for Nasdaq hearing » 09:0206/2606/26/20
Luckin Coffee announced…
Luckin Coffee announced the following: As previously disclosed, the Company received two written notices from the Listing Qualifications Staff of The Nasdaq Stock Market, indicating the grounds of its decision to delist the Company's securities from Nasdaq. On May 22, 2020, the Company requested an oral hearing before the Nasdaq Hearings Panel pursuant to Market Place Rule 4820. On May 23, 2020, Nasdaq informed the Company of the scheduled hearing date of June 25, 2020. On June 24, 2020, the Company notified the Listing Qualifications Staff of the Company's decision to withdraw its request for the aforementioned hearing and not to seek to reverse or stay the Listing Qualification Staff's determination of delisting the Company from the Nasdaq Global Select Market. As a result, the Office of General Counsel of Nasdaq has notified the Company that the Company's shares will be suspended at the open of business on June 29, 2020, and Nasdaq will file a Form 25 Notification of Delisting when all appeal periods have expired.
Fly Intel: Wall Street's top stories for Tuesday » 16:5806/2306/23/20
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Stocks looked headed for…
Fly Intel: Wall Street's top stories at midday » 12:3306/2306/23/20
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Luckin Coffee receives delisting notice from Nasdaq » 09:0306/2306/23/20
Luckin Coffee announced…
Luckin Coffee announced that on June 17, 2020, it received an additional written notice from the Listing Qualifications Staff of the Nasdaq Stock Market indicating that the Company's failure to file its Form 20-F for the period ended December 31, 2019 serves as an additional basis for delisting the Company's securities from the Nasdaq pursuant to Nasdaq Listing Rule 5250(c)(1). This Notice is in addition to the two bases cited in the written notice issued by the Listing Qualifications Staff as disclosed by the Company on May 19, 2020. The Company has been working diligently to explore possible ways to file the Annual Report as soon as possible. However, the Company has not been able to file the Annual Report due to the impact of the delayed financial statement preparation process caused by COVID-19 and the pendency of the previously disclosed internal investigation.