BENSALEM, Pa.–(BUSINESS WIRE)–$RLX #CLASSACTION–Law Offices of Howard G. Smith announces an investigation on behalf of RLX Technology Inc. (“RLX” or the “Company”) (NYSE: RLX) investors concerning the Company’s possible violations of federal securities laws.
RLX purports to be the “No. 1 branded e-vapor company in China,” which the Company claims is its “largest potential market.”
In January 2021, RLX conducted its initial public offering (the “IPO”), selling approximately 116.5 million American Depositary Shares (“ADSs” or “shares”) 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 $9.31, or 48%, to close at $10.15 per share on March 22, 2021, thereby injuring investors.
Then, on June 2, 2021, the Company announced its first quarter 2021 financial results, reporting only a 48% increase in net revenues quarter over quarter, and second quarter guidance suggesting that its gross margin would “remain steady.”
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.
If you purchased RLX’s ADSs, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to [email protected], or visit our website at www.howardsmithlaw.com.
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