Notice of Lead Plaintiff Deadline for Shareholders in the RLX Technology Inc. Class Action Lawsuit
SAN DIEGO–(BUSINESS WIRE) – Robbins Geller Rudman & Dowd LLP announces that a class action lawsuit on behalf of buyers of RLX Technology Inc. (NYSE: RLX) American Depository Shares (“ADS”) is being filed in the southern borough of New York. was filed on the F-1 Registration Statement and Prospectus on Form 424B4 (collectively the “Registration Statement”) issued in connection with RLX Technology’s initial public offering in January 2021 (“IPO”). The case is entitled Garnett v. RLX Technology Inc., No. 21-cv-05125 and assigned to Judge Paul A. Engelmayer. RLX Technology’s class action lawsuit charges RLX Technology, some of its officers and directors, and the underwriters of its IPO for violating the Securities Act of 1933.
The Private Securities Litigation Reform Act of 1995 allows any investor who has acquired RLX Technology’s ADSs in connection with RLX Technology’s initial public offering to act as lead plaintiff in the RLX Technology class action lawsuit. A lead plaintiff is usually the applicant with the greatest financial interest in the legal protection sought by the alleged class, which is also typical and appropriate for the alleged class. One lead plaintiff is acting on behalf of all of the other class plaintiffs in directing the RLX Technology class action lawsuit. The lead plaintiff can select a law firm of their choice to bring the RLX Technology class action lawsuit. An investor’s ability to participate in a possible future collection of RLX Technology’s class action lawsuit does not depend on whether or not they are the lead plaintiff. If you would like to stand as the lead plaintiff in the RLX Technology class action or have any questions about your rights in relation to the RLX Technology class action, please include your information here or contact attorney JC Sanchez of Robbins Geller at 800 / 449- 4900 or 619 / 231-1058 or by email to [email protected] Motions by the lead plaintiffs for the RLX Technology class action lawsuit must be filed with the court no later than August 9, 2021.
RLX Technology claims to be the “No. 1 Branded Electric Steam Company in China “which it also claims is its” largest potential market “. In January 2021, defendants issued approximately 116.5 million ADS at $ 12 per ADS to the investing public as part of RLX Technology’s initial public offering, generating gross proceeds of approximately $ 1.4 billion.
RLX Technology’s class action lawsuit alleges that the registration statement contained false statements about material facts and omitted material facts that are both required and necessary by applicable regulations in order not to mislead the statements made. RLX Technology’s class action lawsuit alleges, among other things, that the registration statement misrepresented and omitted that, at the time of the IPO, RLX Technology knew (or had information that was foreseeable) that China was adopting a national standard for e-cigarettes that would bring them in line with regular cigarette regulations. RLX Technology’s class action lawsuit also alleges that RLX Technology knew its reported financial results were not nearly as rosy as the registration statement made it appear, nor did it indicate future results. By omitting these facts and showing, for example, that the regulatory risk is only a conditional possibility, the RLX Technology class action alleges that investors could not adequately assess the value of the shares offered in connection with the IPO and thus their ADSs were acquired without essential information and to their detriment.
On or around March 22, 2021, the Chinese Ministry of Industry and Information Technology published a draft regulation confirming that e-cigarettes and new tobacco products will be regulated in a similar way to traditional tobacco offerings. Because of this news, RLX Technology’s ADS price fell nearly 48%.
Then, on June 2, 2021, RLX Technology released its financial results for the first quarter of 2021, which show net sales growth of just 48% quarter over quarter and a forecast for the second quarter that suggests gross margin is only “stable would stay ”. Because of this news, RLX Technology’s ADS price fell another 9%. At the start of this move, RLX Technology’s ADSs were trading more than 32% below the initial public offering price.
With 200 attorneys in 9 offices across the country, Robbins Geller Rudman & Dowd LLP is the largest US law firm serving investors in securities class actions. Robbins Geller’s attorneys have secured many of the largest shareholder reclaims in history, including the largest securities class action of all time – $ 7.2 billion – in In re Enron Corp. Sec. Lit. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for getting $ 1.6 billion back for investors last year, more than double the amount paid by all other securities plaintiffs was drafted. More information is available at http://www.rgrdlaw.com.
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