RLX Technology Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired RLX Technology Inc. (“RLX” or the “Company”) (NYSE: RLX) American Depository Shares (“ADS”) pursuant or traceable to the Registration Statement and Prospectus issued in connection with RLX’s January 2021 initial public offering (“IPO”) between January 19, 2021 and June 9, 2021, inclusive (the “Class Period”). Investors have until August 9, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
RLX purports to be the “No. 1 branded e-vapor company in China,” which the Company claims is its “largest potential market.”
In January 2021, RLX conducted its IPO, selling approximately 116.5 million ADS at $12 per ADS, raising approximately $1.4 billion in gross proceeds.
On March 22, 2021, China’s Ministry of Industry and Information Technology posted draft regulations confirming that e-cigarettes and new tobacco products would be regulated similar to traditional tobacco offerings. On this news, RLX’s ADS price declined by $9.31 per ADS, or approximately 47.8%, from $19.46 per ADS on March 19, 2021 to close at $10.15 per ADS on March 22, 2021, thereby injuring investors.
Then, on June 2, 2021, the Company announced its first quarter 2021 financial results, reporting only a 48% increase in net revenues quarter over quarter, and second quarter guidance suggesting that its gross margin would “remain steady.” On this news, RLX’s ADS price declined by $0.35 per ADS, or nearly 3.1%, from $11.22 per ADS on June 2, 2021 to close at $10.87 per ADS on June 3, 2021, which is approximately 9.4% below the IPO price, thereby damaging investors further.
The lawsuit alleges that defendants overstated certain financial metrics and failed to disclose that these metrics were not indicative of future financial performance since regulators in China were already working on a national standard for e-cigarettes that would regulate them either under the same rules or in the same manner as ordinary cigarettes.
If you purchased or otherwise acquired RLX ADS, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.