Frank R. Cruz Law Firms Remind Investors of Looming Class Action Against RLX Technology Inc. (RLX)
LOS ANGELES–(COMMERCIAL THREAD) – Frank R. Cruz’s law firms remind investors of the August 9, 2021 deadline for filing a petition as lead plaintiff in the matter filed on behalf of investors who have purchased RLX Technology Inc. (“RLX” or the “Company”) (NYSE: RLX) American Depositary Shares (“ADS” or “Shares”) in accordance with or traceable to the registration statement and prospectus issued in connection with RLX’s initial public offering (“IPO”) in January 2021.
If you are a shareholder who has suffered a loss, click here to participate.
RLX claims to be the “No. 1 branded electronic vapor enterprise in China, ”which the company says is its“ biggest potential market ”.
In January 2021, RLX proceeded to its IPO, selling approximately 116.5 million ADS at $ 12 per ADS, raising gross proceeds of approximately $ 1.4 billion.
On March 22, 2021, China’s Ministry of Industry and Information Technology released draft regulations confirming that electronic cigarettes and new tobacco products would be regulated in the same way as traditional tobacco offerings.
On this news, the RLX share price fell $ 9.31, or 48%, to close at $ 10.15 per share on March 22, 2021, hurting investors.
Then, on June 2, 2021, the company announced its financial results for the first quarter of 2021, showing only a 48% increase in net revenue quarter over quarter, and second quarter forecast suggesting that its gross margin “would remain stable”.
At this news, the RLX share price fell $ 0.97, or nearly 9%, to close at $ 9.90 per share on June 4, 2021, further hurting investors. The Company’s shares have traded as low as $ 7.89 per ADS, which is 32% below the IPO price.
The complaint alleges that the defendants overestimated certain financial measures and did not disclose that these measures were not indicative of future financial performance, as regulators in China were already working on a national standard for electronic cigarettes that would regulate them either according to the same rules, ie in the same way as regular cigarettes.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you have purchased or otherwise acquired securities of RLX Technology during the Recourse Period, you may apply to Court no later than August 9, 2021 to seek appointment as the principal plaintiff in this putative class action lawsuit. To be a member of the class action, you do not need to take any action at this time; you can retain the services of the lawyer of your choice or take no action and remain an absent member of the class action. If you would like to know more about this class action, or if you have any questions regarding this announcement or your rights or interests in relation to the pending class action, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, CA 90067 at 310-914-5007, by email at [email protected], or visit our website at www.frankcruzlaw.com. If you are applying by email, please include your mailing address, phone number and number of shares purchased.
This press release may be considered an attorney’s advertisement in certain jurisdictions under applicable law and ethical rules.