SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that purchasers of RLX Technology Inc. (NYSE:RLX) American Depository Shares (“ADS”) pursuant or traceable to the F-1 registration statement and related prospectus on Form 424B4 (collectively, the “Registration Statement”) issued in connection with RLX Technology’s January 2021 initial public offering (“IPO”) have until August 9, 2021 to seek appointment as lead plaintiff in the RLX Technology class action lawsuit. The case is captioned Garnett v. RLX Technology Inc., No. 21-cv-05125, and is assigned to Judge Paul A. Engelmayer of the Southern District of New York.
If you wish to serve as lead plaintiff of the RLX Technology class action lawsuit or have questions concerning your rights regarding the RLX Technology class action lawsuit, please provide your information here or contact counsel, J.C. Sanchez of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at email@example.com. Lead plaintiff motions for the RLX Technology class action lawsuit must be filed with the court no later than August 9, 2021.
CASE ALLEGATIONS: RLX Technology purports to be the “No. 1 branded e-vapor company in China,” which it also claims is its “largest potential market.” In January 2021, as part of RLX Technology’s IPO, defendants issued approximately 116.5 million ADS to the investing public at $12 per ADS, raising approximately $1.4 billion in gross proceeds.
The RLX Technology class action lawsuit alleges that the Registration Statement contained untrue statements of material fact and omitted to state material facts both required by governing regulations and necessary to make the statements made not misleading. Among other things, the RLX Technology class action lawsuit alleges that the Registration Statement misrepresented and omitted that RLX knew (or had information making it foreseeable to know), at the time of the IPO, that China was working on a national standard for e-cigarettes that would bring them into line with regular cigarette regulations. The RLX Technology class action lawsuit further alleges that RLX knew that its reported financials were not nearly as rosy as the Registration Statement made it seem, nor indicative of future results. By omitting these facts and, for example, representing that the risk of regulation was only a contingent possibility, the RLX Technology class action lawsuit alleges that investors were unable to adequately assess the value of the shares offered in connection with the IPO, and thus purchased their ADSs without material information and to their detriment.
On or about March 22, 2021, China’s Ministry of Industry and Information Technology posted draft regulations confirming that e-cigarettes and new tobacco products would be regulated similar to traditional tobacco offerings. On this news, RLX Technology’s ADS price declined nearly 48%.
Then, on June 2, 2021, RLX Technology published its first quarter 2021 financial results, revealing a mere 48% increase in net revenues quarter over quarter, and second quarter guidance suggesting that its gross margin would only “remain steady.” On this news, RLX Technology’s ADS price fell an additional 9%. By the commencement of this action, RLX Technology’s ADSs traded more than 32% below the IPO offering price.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased RLX Technology ADSs in connection with RLX Technology’s IPO to seek appointment as lead plaintiff in the RLX Technology class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the RLX Technology class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the RLX Technology class action lawsuit. An investor’s ability to share in any potential future recovery of the RLX Technology class action lawsuit is not dependent upon serving as lead plaintiff.
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