Acting chief executive officer and existing board member, Jinyi Guo, has been appointed the chairman and the CEO of the Chinese coffee chain company.
Charles Zhengyao Lu, the former chairman and co-founder of Luckin, ceases to be a director.
The ouster of Lu comes weeks after an earlier attempt to do the same failed to get enough votes at a board meeting.
It was reported earlier that Lu was in the know of a $310 million securities fraud at Luckin, which led to an investigation conducted by the company’s board and law firm Kirkland & Ellis.
It is alleged that Lu did not fully cooperate with the investigations.
Earlier in June, Lu and Luckin board members tried to oust each other after the Beijing-based company got delisted from Nasdaq in the wake of the fraud. Luckin did not contest the delisting.
Luckin also appointed two new independent directors on Monday. Another two directors were named earlier on July 5, noted CNBC.
On Monday, Luckin Coffee OTC shares traded 22.04% lower at $2.90.
This story originally appeared on Benzinga.
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