Kessler Topaz Meltzer & Check, LLP Announces Investor Securities Fraud Class Action Lawsuit Filed Against RLX Technology Inc.

RADNOR, Pa., June 12, 2021 / PRNewswire / – Law firm Kessler Topaz Meltzer & Check, LLP announces that a class action lawsuit has been filed for securities fraud The United States District Court for the southern district of new York against RLX Technology Inc. (NYSE: RLX) (“RLX”) on behalf of those who have purchased or acquired RLX American Depository Shares (“ADS”) pursuant to or traceable to RLX’s January 2021 Initial Public Offering (the “IPO”).

Reminder of the investor deadline: Investors who have bought or acquired RLX ADS as part of the IPO or who can be traced back to it, can do so no later than August 9, 2021to be appointed as the group’s lead plaintiff. For more information or to learn 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; per 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 to be the “No. 1 Branded Electric Steam Company” in Chinawhich it also claims is its “biggest potential market” January 19, 2021RLX has submitted its final amendment to a Form F-1 Registration Statement (the “Registration Statement”) that registered 133,975,000 RLX ADS for public sale. On January 22, 2021the defendants award the IPO $ 12 via ADS and has submitted the final prospectus for the IPO, which is part of the registration form. As a result of the IPO, Defendants issued and sold around 116,500,000 RLX ADS, all in accordance with the registration statement, for gross proceeds of almost of $ 1.4 billion.

The complaint alleges that, among other things, the registration statement includes exposure of RLX to China Campaign to establish a national standard for e-cigarettes that would bring them in line with regular cigarette regulations.

The truth was revealed when the Ministry of Industry and Information Technology before the market opening on March 22, 2021, eight weeks after RLX went public, confirming that e-cigarettes and new tobacco products would be regulated in a manner similar to traditional tobacco offerings. After this news, the price of RLX shares suffered a huge decline. On March 22, 2021, ADS from RLX closed at $ 10.15 per ADS, almost 48% less than the previous closing price $ 19.46 per ADS March 19, 2021, the previous trading day.

Then, on June 2, 2021 RLX released its financial results for the first quarter of 2021, announcing net sales growth of just 48% quarter over quarter, and the forecast for the second quarter indicated that gross margin would “stay stable”. Following the news, RLX shares declined to close on June 4, 2021 at the $ 9.90 per ADS, almost 9% less than his June 3, 2021 near $ 10.87 per ADS. Before the litigation began, RLX’s shares were as low as $ 7.89 per ADS or more than 32% below the IPO price.

RLX investors can do so no later than August 9, 2021, seek to be appointed as lead class agent through 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 want to 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, recovering billions of dollars on behalf of institutional and private investors The United States and all over 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.

CONTACT:

Kessler Topas Meltzer & Check, LLP
James Maro, Jr., Esq.
Adrienne Bell, Esq.
280 König-von-Preußen-Strasse
Radnor, PA 19087
(844) 887-9500 (toll free)
[email protected]

SOURCE Kessler Topas Meltzer & Check, LLP

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