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Update on Class Action Lawsuit Against RCI Hospitality Holdings

Recently, investors holding securities of RCI Hospitality Holdings, Inc. (NASDAQ: RICK) are being reminded to take note of a class action lawsuit initiated due to serious allegations against the company. RCI Holdings, known for owning and operating strip clubs across the United States, is currently embroiled in legal issues stemming from accusations of tax fraud and bribery.

Background of the Case

The class action pertains to a class period that spans from December 15, 2021, to September 16, 2025. During this period, shareholders allege that RCI Holdings engaged in unlawful activities aimed at hiding tax fraud. The complaints specify that the company reportedly committed bribery to obscure its legal transgressions. This information was made public on September 16, 2025, when Letitia James, the Attorney General of New York, announced indictments against the executives of RCI Hospitality Holdings for these serious offenses.

After this announcement, RCI's stock price took a significant hit, falling sharply by $5.53 per share, equivalent to a 16% decrease, and closed at $28.79. The following day, it plummeted further by 10.38%, closing at $25.80. Such market reactions have raised alarm bells for investors.

Details of Allegations

The crux of the complaint lies in several key allegations:
1. Tax Fraud: The defendants allegedly failed to disclose their involvement in tax fraud, misleading shareholders about the company's financial stability.
2. Bribery: Assertions include that company officials engaged in bribery to conceal their fraudulent actions, effectively attempting to manipulate legal scrutiny.
3. Understated Risk: The lack of transparency regarding these issues resulted in an understatement of the legal risks the company was facing. This misrepresentation has had serious implications for shareholder trust and investment value.

Next Steps for Investors

If you are an RCI Hospitality Holdings investor, it is crucial to understand your rights and potential next steps. Interested shareholders are encouraged to consult Robbins LLP to determine your eligibility to participate in the class action. A pressing deadline exists for appointing a lead plaintiff, which is set for November 20, 2025. The lead plaintiff plays a pivotal role, acting on behalf of other class members throughout the litigation process.

Your Options

For those who wish to remain passive and opt out of participating as lead plaintiffs, you still maintain the right to remain an absent class member and could be eligible for any potential recoveries from the outcome of the case. Furthermore, Robbins LLP operates on a contingency fee basis, which means shareholders will not incur any legal fees unless a recovery is achieved.

About Robbins LLP

Robbins LLP is a well-recognized firm specializing in shareholder rights litigation. Since its inception in 2002, the firm has committed itself to aiding shareholders in recovering losses and pushing for greater accountability from corporate executives. The firm provides essential support to investors grappling with corporate malfeasance and aims to restore integrity in the marketplace for all shareholders.

Conclusion

In light of these developments, it is imperative for investors involved with RCI Hospitality Holdings to stay informed and proactive. Engaging with legal counsel may provide insights into options available for protecting your investment interests amid these serious allegations and market fluctuations. For ongoing updates or more information regarding the class action, shareholders are encouraged to sign up for alerts via Robbins LLP's Stock Watch service.