Glancy Prongay & Murray LLP Reminds Investors of Looming Deadline in the Class Action Lawsuit Against RLX Technology Inc. (RLX)
LOS ANGELES, July 30, 2021 /PRNewswire/ -- Glancy Prongay & Murray LLP ("GPM") reminds investors of the upcoming August 9, 2021 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired RLX Technology Inc. ("RLX" or the "Company") (NYSE: RLX) American Depositary Shares ("ADSs" or "shares") pursuant or traceable to the Registration Statement and Prospectus issued in connection with RLX's January 2021 initial public offering ("IPO").
If you suffered a loss on your RLX investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at https://www.glancylaw.com/cases/rlx-technology-inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at [email protected] to learn more about your rights.
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 ADSs) 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 share price fell $9.31, or 48%, to close at $10.15 per share 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 share price fell $0.97, or nearly 9%, to close at $9.90 per share on June 4, 2021, thereby damaging investors further. The Company's shares have traded as low as $7.89 per ADS, or 32% below the IPO price.
The complaint 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.
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If you purchased or otherwise acquired RLX ADSs pursuant or traceable to the IPO, you may move the Court no later than August 9, 2021 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to [email protected], or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Glancy Prongay & Murray LLP, Los Angeles
Charles Linehan, 310-201-9150 or 888-773-9224
[email protected]
www.glancylaw.com
SOURCE Glancy Prongay & Murray LLP
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