Lowey Dannenberg Investigates Claims on Behalf of Investors of RLX Technology Inc. (RLX) and ...
NEW YORK, June 30, 2021 (GLOBE NEWSWIRE) -- Lowey Dannenberg P.C., a preeminent law firm in obtaining redress for consumers and investors, is investigating claims of violations of federal securities laws on behalf of investors of RLX Technology Inc. (“RLX” or the “Company”) (NYSE: RLX). If you are a shareholder of RLX with more than $100,000 in losses, you should contact the Firm.
RLX Technology Inc. (“RLX” or the “Company”) purports to be the “No. 1 branded e-vapor company in China.” In January 2021, RLX conducted its IPO, selling approximately 116.5 million ADSs at $12 per ADS, raising approximately $1.4 billion in gross proceeds.
On March 22, 2021, China’s Ministry of Industry and Information Technology posted draft regulations confirming that e-cigarettes and new tobacco products would be regulated similar to traditional tobacco offerings.
On this news, RLX’s share price fell $0.97, or nearly 9%, to close at $9.90 per share on June 4, 2021, thereby damaging investors further. The Company’s shares have traded as low as $7.89 per ADS, or 32% below the IPO price.
A securities class action has been filed against RLX on behalf of shareholders that purchased RLX shares between January 22, 2021 through June 2, 2021. This case has been filed in the U.S. District Court for the Southern District of New York.
The Complaint alleges that the 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 made not misleading. Among other things, the registration statement misrepresented and omitted that RLX knew (or had information making it foreseeable to know), at the time of the IPO, that China was working on a national standard for e-cigarettes that would bring them into line with regular cigarette regulations. What is more, 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 and, for example, representing that the risk of regulation was only a contingent possibility, Plaintiff and other 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.
If you are a shareholder of RLX who purchased RLX securities between January 22, 2021 and June 9, 2021, you have until August 9, 2021, to ask the Court to appoint you as Lead Plaintiff for the class. To participate, learn more, or discuss the issues surrounding the investigation, please contact our attorneys at (914) 733-7256 or via email at firstname.lastname@example.org. For more information, visit our website at https://lowey.com/cases/rlx-technology-inc/.
Whistleblowers: Persons with non-public information regarding RLX should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.
About Lowey Dannenberg
Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.
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