Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased RLX Technology Inc. (“RLX” or the “Company”) (NYSE: RLX) American Depositary Shares (“ADSs” or ”shares”) pursuant or traceable to the Registration Statement and Prospectus issued in connection with RLX’s January 2021 initial public offering (“IPO”). RLX investors have until August 9, 2021 to file a lead plaintiff motion.
Investors suffering losses on their RLX investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
RLX purports to be the “No. 1 branded e-vapor company in China,” which the Company claims is its “largest potential market.”
In January 2021, RLX conducted its IPO, selling approximately 116.5 million ADSs at $12 per ADS, raising approximately $1.4 billion in gross proceeds.
On 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’s share price fell $9.31, or 48%, to close at $10.15 per share on March 22, 2021, thereby injuring investors.
Then, on June 2, 2021, the Company announced its first quarter 2021 financial results, reporting only a 48% increase in net revenues quarter over quarter, and second quarter guidance suggesting that its gross margin would “remain steady.”
On this news, RLX’s share price fell $0.97, or nearly 9%, to close at $9.90 per share on June 4, 2021, thereby damaging investors further. The Company’s shares have traded as low as $7.89 per ADS, or 32% below the IPO price.
The complaint alleges that Defendants overstated certain financial metrics and failed to disclose that these metrics were not indicative of future financial performance since regulators in China were already working on a national standard for e-cigarettes that would regulate them either under the same rules or in the same manner as ordinary cigarettes.
If you purchased RLX ADSs, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20210616005096/en/
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
