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LeEco delays payroll until August due to 'financial constraints'

LeEco delays payroll until August due to 'financial constraints'
From TechCrunch - July 11, 2017

Some LeEco employees in China will not get paid until August. According to an official statement provided to TechCrunch, Leshi Holdings, LeEcos holding company has decided to postpone Julys payroll until August 10th. This is at least the third time this year LeEco has delayed paying some of its workers.

Right now, it seems only employees in China will not get a paycheck into August. Sources within LeEco say the company has not yet announced delaying paying US workers, though in the past it reportedly did so without telling employees. Gizmodo and Bloomberg point to two separate incidents where LeEco missed paying their workers on time in 2017.

The statement says that it has contacted the affected employees and guarantees full payment to individuals social insurance and housing fund.

LeEco is also now facing a $100M lawsuit from Vizio, the US-based TV maker it attempted to purchase. The lawsuit alleges Vizio executives mischaracterized the financial health of the company and intended to use the purchase to spin publicity and obtain records Vizios confidential customer data.

Todays news is just another entry in the tale of LeEcos downfall.

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