NEW YORK, June 11, 2021 (GLOBE NEWSWIRE) — Bernstein Liebhard, a nationally acclaimed investor rights law firm, announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired the American Depository Shares (“ADS”) of RLX Technology Inc. (“RLX” or the “Company”) (NYSE: RLX) from January 19, 2021 through June 9, 2021 (the “Class Period”). The lawsuit filed in the United States District Court for the Southern District of New York alleges violations of the Securities Act of 1933.
If you purchased RLX securities, and/or would like to discuss your legal rights and options please visit RLX Shareholder Class Action Lawsuit or contact Joseph R. Seidman, Jr. toll free at (877) 779-1414 or [email protected]
The complaint alleges that the Company’s registration statement contained untrue statements of material fact and omitted to state material facts both required by governing regulations and necessary to make the statements not misleading. Among other things, the registration statement misrepresented and omitted that RLX knew (or had information making if foreseeable to know), at the time of the Initial Public Offering (“IPO”), that China was working on a national standard for e-cigarettes that would bring them into line with regular cigarette regulations. The complaint also alleges that RLX knew that its reported financials were not nearly as rosy as the registration statement made it seem, nor indicative of future results. By omitting these facts, ADS purchasers were unable to adequately assess the value of the shares offered in connection with the IPO, and thus purchased their ADS without material information and to their detriment.
When draft regulations were posted by China’s Ministry of Industry and Information Technology on March 22, 2021, the price of RLX’s shares suffered an enormous decline, closing at $10.15 per ADS, down nearly 48% from its previous close of $19.46 per ADS.
Then, when the Company posted its first quarter 2021 financial results on June 2, 2021, RLX’s shares declined again, closing on June 4, 2021 at $9.90 per ADS, down nearly 9% from its June 3, 2021 close of $10.87 per ADS.
If you wish to serve as lead plaintiff, you must move the Court no later than August 9, 2021. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased RLX securities, and/or would like to discuss your legal rights and options please visit https://www.bernlieb.com/cases/rlxtechnologyinc-rlx-shareholder-class-action-lawsuit-fraud-stock-405/apply/ or contact Joseph R. Seidman, Jr. toll free at (877) 779-1414 or [email protected]
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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Joseph R. Seidman, Jr.
Bernstein Liebhard LLP