LK - Court Rules Against Luckin to Pay Banks After Losses
Charles Lu and Luckin Coffee (NASDAQ: LK) continue to face trouble after an accounting scandal broke in April. The company was sued by several banks, including Credit Suisse (NYSE: CS), and a Cayman Islands court ruled in the banks' favor.
Luckin was temporarily delisted from the Nasdaq after it was revealed that it had reported fraudulent revenue numbers, and Charles Lu, the company's chairman, has seen his empire start to crack. His investment firm has had to sell its stake in other companies as they try to separate from Luckin, and several banks sued him for $324 million in defaulted loans.
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