RCI Hospitality Holdings Faces Class Action Over Alleged Bribery and Tax Fraud

Overview

A class action lawsuit has been initiated against RCI Hospitality Holdings, Inc. (NASDAQ: RICK), a company known for its operation of strip clubs across the United States. Robbins LLP, a law firm specializing in shareholder rights, is reminding investors about the opportunity to join this action as lead plaintiffs. This lawsuit is pertinent for anyone who acquired RCI stocks during the specified timeframe of December 15, 2021, to September 16, 2025.

Allegations Against RCI Hospitality Holdings

The firm is currently investigating serious allegations associated with RCI Hospitality. The complaint outlines three major points:
1. Tax Fraud: The executives of RCI allegedly engaged in fraudulent activities related to tax obligations, leading to improper financial disclosures.
2. Bribery: To cover up these alleged tax irregularities, it is claimed that the company executives resorted to bribery, specifically targeting state tax auditors.
3. Risk Understatement: By hiding these unlawful acts, the defendants supposedly downplayed the legal risks facing the company, potentially misleading investors about the company's financial health.

The ramifications took a toll on RCI's stock performance after the allegations became public. Following an announcement by New York Attorney General Letitia James regarding indictments against the company's executives, RCI's stock suffered a significant drop—a staggering decrease of 16%, losing $5.53 per share on September 16, 2025, and falling even further by 10.38% the next day.

Participation and Deadlines

Investors looking to take an active role in the lawsuit and serve as lead plaintiffs must file their applications by November 20, 2025. Being a lead plaintiff means representing the interests of all class members in the ongoing litigation against RCI Hospitality Holdings. It's critical to understand that participation in the case is not mandatory to secure potential recoveries—shareholders can choose simply to remain as absent class members if they prefer.

Robbins LLP highlights that they work on a contingency fee basis, meaning that shareholders will not incur any fees or expenses unless there's a favorable outcome in the case.

About Robbins LLP

Since its establishment in 2002, Robbins LLP has built a reputation as a leader in litigation focused on shareholder rights. The firm has consistently advocated for corporate governance improvements and holds executives accountable for their actions, aiming to help shareholders recover losses attributable to corporate misconduct.

The urgency surrounding this class action sends a strong message to potential plaintiffs: time is of the essence. Interested parties should act promptly to ensure they meet the critical deadlines pertaining to this lawsuit.

Staying Informed

For those wanting to keep abreast of any developments regarding the RCI Hospitality Holdings case or similar corporate misconduct cases, signing up for Robbins LLP's Stock Watch could provide valuable updates, including notifications if a class action settlement occurs.

Should you need further assistance or wish to submit a claim, you can contact Robbins LLP directly at (800) 350-6003, or reach out to attorney Aaron Dumas, Jr. for personalized counsel.

You can also visit Robbins LLP's official webpage for detailed information regarding this class action and other ongoing cases.