Jun 30, 2021 2:51 PM ET
Legal Newswire POWERED BY LAW.COM
The law firm of Kessler Topaz Meltzer & Check, LLP announces that a securities fraud class action lawsuit has been filed in the United States District Court for the Southern District of New York against RLX Technology Inc. on behalf of those who purchased or acquired RLX American Depository Shares (“ADS”) pursuant or traceable to RLX’s January 2021 initial public stock offering (the “IPO”).
RLX claims to be the “No. 1 branded e-vapor company in China,” which it also claims is its “largest potential market.” On January 19, 2021, RLX filed its final amendment to a Form F-1 registration statement (the “Registration Statement”), which registered 133,975,000 RLX ADS for public sale. On January 22, 2021, the defendants priced the IPO at $12 per ADS and filed the final prospectus for the IPO, which forms part of the Registration Statement. Through the IPO, the defendants issued and sold approximately 116,500,000 RLX ADS, all pursuant to the Registration Statement, for gross proceeds of nearly $1.4 billion.
The complaint alleges that the Registration Statement misrepresented and omitted, among other things, RLX’s exposure to China’s then-existing campaign to establish a national standard for e-cigarettes that would bring them into line with regular cigarette regulations.
The truth was revealed when draft regulations were posted by the Ministry of Industry and Information Technology, before the market opened on March 22, 2021, eight weeks after RLX’s IPO, which confirmed e-cigarettes and new tobacco products would be regulated similar to traditional tobacco offerings. Following this news, the price of RLX’s shares suffered an enormous decline. On March 22, 2021, RLX’s ADS closed at $10.15 per ADS, down nearly 48% from its previous close of $19.46 per ADS on March 19, 2021, the previous trading day.
Then, on June 2, 2021 RLX published its first quarter 2021 financial results, announcing only a 48% increase in net revenues quarter over quarter, and second quarter guidance suggesting that its gross margin would “remain steady.” Following this news, RLX’s shares declined, closing on June 4, 2021 at $9.90 per ADS, down nearly 9% from its June 3, 2021 close of $10.87 per ADS. Before the commencement of the lawsuit, RLX’s shares traded as low as $7.89 per ADS, or more than 32% below the IPO price.
RLX investors may, no later than August 9, 2021, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 887-9500 (toll free)
[email protected]
URL :
http:// www.ktmc.com
Contact Information:
(844) 887-9500 (toll free)
info@ktmc.com
Tags: Wire, Classaction-Marketing, Legal Newswire, United States, English