RLX investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described above, you may no later than August 9, 2021 move the Court to serve as lead plaintiff of the class, if you so choose.
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.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
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; toll-free at (844) 887-9500; 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.