RLX CLASS ACTION ALERT: Kessler Topaz Meltzer & Check, LLP Announces a Securities Fraud Class Action Lawsuit Filed Against RLX Technology Inc.

By On Jun 13, 2021

RADNOR, Pa .– (BUSINESS WIRE) – Law firm Kessler Topaz Meltzer & Check, LLP announces that a securities fraud class action (“RLX”) has been filed against RLX Technology Inc. (NYSE: RLX) in the United States District Court for the Southern District of New York Names of those who bought or acquired RLX American Depository Shares (“ADS”) following RLX’s initial public offering in January 2021 (the “IPO”).

Reminder of the investor deadline: Investors who bought or acquired RLX ADS as part of the IPO or who can be traced back to it no later than August 9, 2021to be appointed as the group’s lead plaintiff. For more information or information on how to participate in this litigation, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; toll free at (844) 887-9500; by email to [email protected]; or click on https://www.ktmc.com/rlx-technology-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=rlx_technology

RLX claims 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, defendants set the IPO at $ 12 per ADS and filed the final prospectus for the IPO, which is part of the registration statement. Through the IPO, Defendants issued and sold approximately 116,500,000 RLX ADS, all as per 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 introduce a national e-cigarette standard that would bring it in line with regular cigarette regulations.

The truth was revealed when the Department of Industry and Information Technology released draft regulations before the market released on March 22, 2021, eight weeks after RLX’s IPO, which confirmed that e-cigarettes and new tobacco products will be regulated in a similar way to traditional tobacco became deals. After this news, the price of RLX shares suffered a huge decline. On March 22, 2021, RLX’s ADS closed at $ 10.15 per ADS, almost 48% less than the previous closing price of $ 19.46 per ADS on March 19, 2021, the previous trading day.

Then, on June 2, 2021, RLX released its financial results for the first quarter of 2021, announcing an increase in net sales of just 48% from the previous quarter. Following this news, shares of RLX fell, closing at $ 9.90 per ADS on June 4, 2021, down nearly 9% from $ 10.87 per ADS on June 3, 2021. Before the litigation began, RLX’s shares were trading at just $ 7.89 per ADS, which is more than 32% below its IPO price.

RLX investors can, no later than August 9, 2021To be appointed as the lead class representative by Kessler Topaz Meltzer & Check, LLP, or other legal 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 the conduct of the dispute. To be appointed as a lead plaintiff, the court must determine that the class plaintiff’s claim is typical of the claims of other class plaintiffs and that the class plaintiff is adequately representing the class action. Your ability to participate in a recovery will not be affected by whether or not you will be the lead plaintiff.

Kessler Topaz Meltzer & Check, LLP pursues class actions in state and federal courts across the country involving securities fraud, fiduciary violations, and other violations of state and federal laws. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform and has collected billions of dollars on behalf of institutional and private investors from the US and around the world. The firm represents investors, consumers and whistleblowers (individuals who report fraudulent practices to the government and participate in recovery of government dollars). The complaint in this lawsuit was not filed by Kessler Topaz Meltzer & Check, LLP. For more information on Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.