SHAREHOLDER ALERT: Robbins LLP Announces that RLX Technology Inc. (RLX) is Being Sued for Misleading Shareholders
SAN DIEGO & NEW YORK – (BUSINESS WIRE) – Shareholder law firm Robbins LLP Announces that a class action lawsuit has been filed on behalf of all buyers of American Depository Shares (“ADS”) by RLX Technology Inc. (NYSE: RLX) pursuant to its initial public offering (“IPO”) in January 2021. The lawsuit brings claims under the Securities Act of 1933. RLX pretends that the “No. 1-brand e-steam company in China “.
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RLX Technology Inc. (RLX) has made false statements about its business outlook
According to the complaint, the registration statement contained untrue information about material facts. Specifically, the registration statement omitted RLX’s exposure to China’s then-existing campaign to introduce a national e-cigarette standard that would bring them in line with regular cigarette regulations by expressly distancing themselves and their products from under the administration of the Chinese tobacco monopoly system. The registration statement also touted that it expected to “continue to benefit from the rapid growth of China’s e-vape market” while overstating its financial prospects amid pending e-cigarette regulations.
RLX’s shares fell nearly 48% on March 22, 2021 when the Department of Industry and Information Technology released its draft regulation confirming that e-cigarettes and new tobacco products would be regulated in a manner similar to traditional tobacco offerings. RLX shares fell again as the company released its financial results for the first quarter of 2021 on June 2, 2021, closing at $ 9.90 per ADS, a 9% decrease from the previous day.
If you acquired shares in RLX Technology Inc. (RLX) in the January 2021 initial public offering, you have until August 9, 2021 to solicit the court’s appointment of your lead plaintiff for the class.
All representations are made on a success fee basis. Shareholders do not pay any fees or expenses.
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