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RLX Technology Inc. (RLX) Made Misstatements Regarding Its Business Prospects

July 28, 2021 at 13:45 PM EDT

ⓘ This article is third-party content and does not represent the views of this site. We make no guarantees regarding its accuracy or completeness.

SHAREHOLDER ALERT: Robbins LLP Reminds Investors that RLX Technology Inc. (RLX) is Being Sued for Misleading Shareholders

SAN DIEGO, CA & NEW YORK, NY / ACCESSWIRE / July 28, 2021 / Shareholder rights law firm Robbins LLP reminds investors that a class action has been filed on behalf of all purchasers of RLX Technology Inc. (NYSE: RLX) American Depository Shares ("ADS") pursuant or traceable to its January 2021 initial public offering ("IPO"). The complaint asserts claims under the Securities Act of 1933. RLX purports to be the "No. 1 branded e-vapor company in China."

If you suffered a loss due to RLX Technology Inc.'s misconduct, click here.

RLX Technology Inc. (RLX) Made Misstatements Regarding Its Business Prospects

According to the complaint, the Registration Statement contained untrue statements of material fact. Specifically, the Registration Statement omitted RLX's exposure to China's then-existing campaign to establish a national standard for e-cigarettes that would bring them in line with regular cigarette regulations by expressly distancing itself and its products from falling under the administration of China's tobacco monopoly system. The Registration Statement also touted that it expected "to continue to be, benefitting from the rapid growth of China's e-vapor market," while overstating its financial prospects in light of the pending regulations for e-cigarettes.

RLX's shares fell nearly 48% on March 22, 2021, when the Ministry of Industry and Information Technology posted its draft regulations, which confirmed e-cigarettes and new tobacco products would be regulated similar to traditional tobacco offerings. RLX's shares fell again when it published its first quarter 2021 financial results on June 2, 2021, closing at $9.90 per ADS, down 9% from the prior day.

If you purchased shares of RLX Technology Inc. (RLX) pursuant to its January 2021 IPO, you have until August 9, 2021, to ask the court to appoint you lead plaintiff for the class.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

Robbins LLP is a nationally recognized leader in shareholder rights law. To be notified if a class action against RLX Technology Inc. settles or to receive free alerts about companies engaged in wrongdoing, sign up for Stock Watch today.

Attorney Advertising. Past results do not guarantee a similar outcome.

CONTACT:
Lauren Levi
Robbins LLP
5040 Shoreham Place
San Diego, CA 92122
llevi@robbinsllp.com
(800) 350-6003
www.robbinsllp.com