Please complete this form relating to your transactions for RLX Technology Inc. (NYSE: RLX) American Depository Shares (“ADS”) pursuant or traceable to RLX’s January 2021 initial public stock offering (the “IPO”).
You may also contact James Maro, Esq. at (484) 270-1453; or you may submit your information via email at email@example.com, or you may click here to print a PDF of this form.
RLX claims to be the “No. 1 branded e-vapor company in China,” which it also claims is its “largest potential market.” On January 19, 2021, RLX filed its final amendment to a Form F-1 registration statement (the “Registration Statement”), which registered 133,975,000 RLX ADS for public sale. On January 22, 2021, the defendants priced the IPO at $12 per ADS and filed the final prospectus for the IPO, which forms part of the Registration Statement. Through the IPO, the defendants issued and sold approximately 116,500,000 RLX ADS, all pursuant to the Registration Statement, for gross proceeds of nearly $1.4 billion.
The complaint alleges that the Registration Statement misrepresented and omitted, among other things, RLX’s exposure to China’s then-existing campaign to establish a national standard for e-cigarettes that would bring them into line with regular cigarette regulations.
The truth was revealed when draft regulations were posted by the Ministry of Industry and Information Technology, before the market opened on March 22, 2021, eight weeks after RLX’s IPO, which confirmed e-cigarettes and new tobacco products would be regulated similar to traditional tobacco offerings. Following this news, the price of RLX’s shares suffered an enormous decline. On March 22, 2021, RLX’s ADS closed at $10.15 per ADS, down nearly 48% from its previous close of $19.46 per ADS on March 19, 2021, the previous trading day.
Then, on June 2, 2021 RLX published its first quarter 2021 financial results, announcing only a 48% increase in net revenues quarter over quarter, and second quarter guidance suggesting that its gross margin would “remain steady.” Following this news, RLX’s shares declined, closing on June 4, 2021 at $9.90 per ADS, down nearly 9% from its June 3, 2021 close of $10.87 per ADS.
Before the commencement of the lawsuit, RLX’s shares traded as low as $7.89 per ADS, or more than 32% below the IPO price.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453; or via e-mail at firstname.lastname@example.org. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.