Car Inc. Chairman Resigns as Luckin Scandal Escalates

  • Luckin is being investigated by the SEC and Chinese regulators
  • Lu’s UCAR is the parent of Chinese rental car giant Car Inc.
Lu ZhengyaoPhotographer: Victor J. Blue/Bloomberg
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The head of Luckin Coffee Inc. resigned as chairman of Car Inc., as scrutiny over the high-flying Chinese coffee chain and its accounting scandal continues to mount. Shares of the car-rental company surged.

Lu Zhengyao resigned as chairman and non-executive director of China’s biggest rental-car fleet operator to devote more time to fulfill his commitments with parent UCAR Inc. and other businesses, according to a statement to the Hong Kong stock exchange Wednesday.