If you’ve finished The Queen’s Gambit or Bridgerton and looking for the next juicy drama to follow, maybe you should become an investor in Luckin Coffee. Luckin was delisted from U.S. exchanges in June after prior management was found to have fabricated millions in fake sales. In the aftermath, the one-time high-flying stock plunged.
This summer also saw more drama come Luckin’s way when former Chairman Charles Lu got himself removed from the Chairman position to avoid scrutiny from the investigation and then installed two hand-picked cronies to represent him on the board. After CEO Jenny Qian was fired, the company selected logistics VP Jinyi Guo as its new CEO.
After settling fines from both the SEC and Chinese authorities, Luckin is also being sued by its bondholders and former shareholders. The Cayman Court has appointed two outside lawyers, or “joint provisional liquidators” (JPLs), to investigate the business in order to potentially restructure the debt so the company can continue as a going concern.