#USA #San Diego #Class Action #RCI Hospitality #Bribery

RCI Hospitality Holdings Faces Class Action Amid Bribery Allegations

Robbins LLP has recently announced an important reminder for shareholders of RCI Hospitality Holdings, Inc. (NASDAQ: RICK) concerning an ongoing class action lawsuit. This legal action pertains to individuals and entities that acquired shares of RCI Hospitality between December 15, 2021, and September 16, 2025. The company, known for owning and operating strip clubs across the United States, is currently under scrutiny for serious allegations.

Allegations of Impropriety

The basis for this class action stems from accusations that RCI Hospitality Holdings engaged in unethical practices, specifically allegations of bribery and tax fraud. According to the complaint filed, the defendants reportedly failed to disclose significant actions:
1. Engaging in tax fraud.
2. Committing bribery to conceal these actions from authorities.
3. Understating the legal risks associated with these actions.

On September 16, 2025, Letitia James, New York State Attorney General, publicly announced the indictment of RCI Hospitality executives for their involvement in a multimillion-dollar tax fraud scheme and subsequent bribery of a state tax auditor. This news led to a sharp decline in RCI's stock price, dropping $5.53, or 16%, to close at $28.79 per share on the same day. The following day, further losses were recorded, bringing the stock down by another $2.99, or approximately 10.38%, to $25.80 per share. Many investors are understandably concerned about the implications of these developments and how they may affect their investments.

Participation in the Class Action

For those who have been affected and wish to take part in the class action, the deadline is looming. Shareholders interested in serving as lead plaintiffs must submit their documentation to the court by November 20, 2025. The lead plaintiff in a class action lawsuit plays a crucial role as the representative party, guiding the litigation on behalf of all class members. However, it’s important to note that participation in this legal action is not mandatory for receiving recovery if the class action results in a settlement. Investors may choose to remain as absent class members if they prefer.

Robbins LLP emphasizes that all representation is structured on a contingency fee basis, meaning shareholders will not incur any upfront fees or expenses associated with legal representation. This arrangement allows investors to pursue justice without the added financial burden.

About Robbins LLP

Robbins LLP has been prominent in the shareholder rights arena since 2002, dedicated to helping investors recover their losses and hold corporate wrongdoers accountable. With extensive experience in combating corporate misconduct and improving governance processes, Robbins LLP's lawyers are well-equipped to support shareholders during this tumultuous time.

To stay informed regarding the status of the class action against RCI Hospitality Holdings, or to receive alerts about corporate misconduct, interested parties can sign up for Robbins LLP’s Stock Watch service. This service aims to keep investors updated about key developments and potential actions within the landscape of corporate governance.

In summary, shareholders of RCI Hospitality Holdings are encouraged to act swiftly if they wish to participate in the class action due to the impending deadlines. The serious nature of the allegations against the company signifies a crucial juncture for investor rights and corporate accountability. Investors should remain vigilant and informed of their rights and the actions they can take to protect their interests.