Ruixing Coffee started to wash the management.
In the evening of May 12, Beijing time, according to documents submitted by Ruixing Coffee (Nasdaq: LK) to the US Securities and Exchange Commission (SEC), the company ’s board of directors has terminated CEO Qian Zhiya and Chief Operating Officer Liu Jian, and received two applications for withdrawal from the board. According to the company’s internal investigation, in addition to Qian Zhiya and Liu Jian, the company also suspended the work of six other employees who participated in or learned about financial fraud, or required them to take leave.
On April 2 this year, Ruixing Coffee announced that the self-examination found that the company ’s chief operating officer (COO) Liu Jian financial fraud, involving approximately 2.2 billion yuan in transactions, The company’s board of directors established a special committee to conduct an internal investigation. In addition, a number of law firms in the United States initiated class actions against them, accusing Ruixing Coffee of making false and misleading statements that violated US securities laws.
After the news came out, Ruixing Coffee’s stock price plummeted. Since Nasdaq asked Ruixing Coffee to provide more information, the stock has been suspended since April 7, and its final transaction price is $ 4.39, with a market value of only $ 1.1 billion.