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The law firm Kessler Topaz Meltzer & Check, LLP announced that it has filed against RLX Technology Inc. (NYSE:Lux) (“RLX”) represents a person who purchases or acquires RLX American Depositary Shares (“ADS”) Based on or traceable to RLX’s initial public offering (“IPO”) in January 2021.
Investor deadline reminder: Investors who buy or acquire RLX ADS The basis may be traceable to the initial public offering, but No later than August 9, 2021, Seeking to be appointed as the chief plaintiff representative of the collective. For more information or to learn how to participate in this lawsuit, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; Toll free (844) 887-9500; Via e-mail info@ktmc.com; or Click on https://www.ktmc.com/rlx-technology-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=rlx_technology
RLX is known as “China’s No. 1 Brand E-cigarette Company” and claims that this is its “biggest potential market.” On January 19, 2021, RLX submitted the final revision of the F-1 Form Registration Statement (“Registration Statement”), in which 133,975,000 RLX ADSs were registered for public sale. On January 22, 2021, the defendant set the price of the IPO at US$12 per ADS and submitted the final IPO prospectus, which forms part of the registration statement. Through the initial public offering, the defendant issued and sold approximately 116,500,000 RLX ADS shares, all according to the registration statement, with a total income of nearly 1.4 billion U.S. dollars.
The complaint stated that the registration statement misrepresented and omitted the impact of RLX on China’s then existing activities to establish national standards for e-cigarettes, which would make e-cigarettes comply with conventional cigarette regulations.
On March 22, 2021, eight weeks after the RLX IPO, before the market opened, the Ministry of Industry and Information Technology released the draft regulations when the truth came to light, confirming that e-cigarettes and new tobacco products will be subject to regulatory supplies similar to traditional tobacco. After the news, RLX’s stock price fell sharply. On March 22, 2021, RLX’s ADS closed at $10.15 per ADS, which was nearly 48% lower than the previous trading day’s closing price per ADS on March 19, 2021.
Then, on June 2, 2021, RLX released its financial results for the first quarter of 2021, announcing that its quarterly net income increased by only 48%, and the guidance for the second quarter indicated that its gross profit margin would “stay”. After the news, RLX’s share price fell and closed at $9.90 per ADS on June 4, 2021, which was nearly 9% lower than the closing price of $10.87 per ADS on June 3, 2021. Before the lawsuit began, RLX’s stock price was as low as $7.89 per ADS, which was more than 32% lower than the IPO price.
Lux Investors may, No later than August 9, 2021, Seek to be appointed as the chief plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other lawyers, or can choose to do nothing and continue to be absent from class members. The lead plaintiff is the representative party who directs the litigation on behalf of all class members. In order to be appointed as the lead plaintiff, the court must determine that the class member’s claim is a typical representative of other class members’ claims, and that the class member will fully represent the class. Your ability to share any recovery is not affected by the decision whether or not to serve as the lead plaintiff.
Kessler Topaz Meltzer & Check, LLP is suing class actions involving securities fraud, breach of fiduciary duties, and other violations of state and federal laws in state and federal courts across the country. Kessler Topaz Meltzer & Check, LLP is the driving force of corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors in the United States and around the world. The company represents investors, consumers, and whistleblowers (private citizens who report fraud against the government and share the recovery of government funds). The complaint in this lawsuit was not filed by Kessler Topaz Meltzer & Check, LLP.For more information about Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.
View the source version on businesswire.com: https://www.businesswire.com/news/home/20210613005012/en/
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