Under the revised Securities Law of China, regulators may have some ability to investigate Luckin, which disclosed wide-scale sales revenue fraud.
If the deal proceeds, Luckin founder Charles Lu and his family will receive up to HK$1.37 billion, likely to be put toward the company’s cash crunch.
Lawyer of these Luckin investors said it is the first time investors have tried to hold a company accountable in China for fraud perpetrated on US markets.
Luckin’s impending implosion has led to a lot of soul-searching with many questioning the environment that allowed Luckin to thrive.
China’s Beijing Automotive Group (BAIC) is seeking to buy a stake of up to 21.26% in Car Inc, a Hong Kong-listed car rental company formed by Luckin Coffee chairman Charles Lu.
China’s regulators have been cracking down on companies like that violate personal privacy and over-collect consumers’ personal data.
After Luckin Coffee’s spectacular admission of fraud, more Chinese companies are finding themselves in the crosshairs of regulators and short sellers.
Elite boards that can overrule the board of directors are the latest fad in Chinese tech corporate governance.
Tech stocks are down following an epidemic. Luckin Coffee’s stock has suffered the most, as mask manufacturers’ share prices rise.
As “second landlord” platform Danke Apartment teeters, tens of thousands of its tenants are facing eviction.