Banks including Credit Suisse Group AG have won court orders to liquidate tens of millions of dollars in Luckin Coffee Inc. stock owned by embattled Chairman Charles Lu, a development that could weaken his control over the company as a crucial shareholder vote looms.

The Grand Court of the Cayman Islands ruled in favor of the lenders, which are owed $324 million after Mr. Lu defaulted on a margin loan facility, according to the judgment.

Read More