Robbins Geller Rudman & Dowd LLP Announces Upcoming Lead Plaintiff Deadline in the RLX Technology Inc. Class Action Lawsuit – RLX
SAN DIEGO–(BUSINESS WIRE) – Robbins Geller Rudman & Dowd LLP announces that buyers of American Depository Shares (“ADS”) from RLX Technology Inc. (NYSE: RLX) have been authorized to register under Registration Statement F-1 and its prospectus on Form 424B4 (collectively, Registration Statement ”) issued in connection with RLX Technology’s January 2021 initial public offering (“ IPO ”) has until August 9, 2021 to seek appointment as lead plaintiff in RLX Technology’s class action lawsuit. The case is entitled Garnett v. RLX Technology Inc., No. 21-cv-05125, and is assigned to Judge Paul A. Engelmayer of the Southern District of New York.
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 firstname.lastname@example.org. Motions by the lead plaintiffs for the RLX Technology class action lawsuit must be filed with the court no later than August 9, 2021.
CASE ALLEGATIONS: RLX Technology claims the “No. 1 Branded E-Vapor 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.
The RLX Technology class action alleges that the registration statement contained false information about material facts and omitted material facts that are both required and necessary by the applicable regulations in order not to mislead the information provided. 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 knew (or had information that made it predictable) that China was complying with a national standard for e-cigarettes that would bring them in line with regular cigarette regulations. RLX Technology’s class action lawsuit further alleges that RLX knew its reported financial results were not nearly as rosy as the registration statement made it appear, nor did they indicate future results. By omitting these facts and showing, for example, that the regulatory risk is only a conditional possibility, the class action by RLX Technology 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.
THE LEAD APPLICANT TRIAL: The Private Securities Litigation Reform Act of 1995 allows any investor who has purchased ADSs from RLX Technology in connection with RLX Technology’s initial public offering to seek appointment as the 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 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 they are the lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: 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 recoveries 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 in first place for getting $ 1.6 billion back for investors last year, more than double the amount paid by any other securities plaintiff firm was drafted. More information is available at http://www.rgrdlaw.com.
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