Luckin went public in the U.S. in May 2019, listed in NASDQA and raising $561 million. Its success drew in big international investors such as BlackRock Inc. and support from banks including Credit...

Luckin went public in the U.S. in May 2019, listed in NASDQA and raising $561
million. Its success drew in big international investors such as BlackRock Inc.
and support from banks including Credit Suisse Group AG. However, Muddy
Waters Research’s 89 page report claimed that Luckin was inflating the
number of items sold per day by 69% in the third quarter of 2019 and 88% in
the fourth, purportedly revealing fraud within Luckin.
Both Luckin’s Chairman & co-founder Lu Zhengyao and co-founder Qian Zhiya
were removed from the board of directors. Should both co-founders be liable
for the shareholders’ investment loss as the element of fraud was revealed
even though a public limited company has limited liability?