LK - Luckin's Founder Faces More Trouble After Fraud Scandal
Luckin Coffee's (NASDAQ: LK) inflated-revenue scandal is still making waves weeks after first being reported. Charles Lu, co-founder and chairman of the company, is selling his shares in the Hong Kong-listed Car Inc., where he also serves as chairman, because the Luckin story has affected share value.
In addition to other holdings, Lu's investment firm, UCAR, had large holdings of Car Inc. It had sold 17% to a Warburg Pincus group in April and is now selling its remaining 21.26% share to Beijing Automotive. Although the amount of this sale wasn't disclosed in the exchange filing on Monday, the shares are worth about $129 million according to their current market value.