#USA #San Diego #Class Action #RCI Hospitality #Tax Fraud

RCI Hospitality Holdings Faces Legal Actions

In a significant development for shareholders of RCI Hospitality Holdings, Inc. (NASDAQ: RICK), Robbins LLP has announced a class action lawsuit on behalf of those who acquired securities from the company between December 15, 2021, and September 16, 2025. RCI Hospitality, known for operating strip clubs across the United States, has come under fire amid serious allegations involving tax fraud and bribery.

Allegations Against RCI Hospitality Holdings

The core allegations in this lawsuit stem from claims that RCI Hospitality engaged in fraudulent activities to manipulate their legal and financial standing. According to the complaint, the defendants failed to disclose crucial information, particularly concerning their engagement in tax fraud and bribery meant to conceal these illicit practices. As highlighted by the New York State Attorney General, Letitia James, several executives of the strip club chain were indicted in a multimillion-dollar scheme involving tax fraud, alongside bribery targeted at a state tax auditor.

On September 16, 2025, the fallout from the Attorney General's announcement was immediate, prompting a sharp decline in RCI's stock price. The shares reportedly plummeted by $5.53, representing a 16% drop, closing at $28.79. The subsequent day saw an additional drop of $2.99, marking a further 10.38% decline to $25.80 per share. Such dramatic price fluctuations highlight the market's reaction to these serious legal developments, impacting the investments of countless shareholders.

Opportunities for Shareholders

Shareholders who purchased or otherwise acquired RCI securities within the specified timeframe may have the opportunity to join the class action. Individuals interested in taking a more proactive role can file to serve as lead plaintiffs in the class action suit, with submissions due by November 20, 2025. The lead plaintiff will represent the interests of all class members in court.

It’s important to note that participation in the lawsuit is not necessary to receive compensation should the class action succeed. Shareholders can still remain as absent class members, awaiting the resolution outcomes without direct involvement.

Robbins LLP operates on a contingency fee basis, meaning shareholders will not incur any out-of-pocket costs or expenses during the litigation process. This aspect can greatly encourage participation, as it removes the financial burden often associated with legal action.

About Robbins LLP

Since its inception in 2002, Robbins LLP has gained a reputation as a leading firm in shareholder rights litigation. The firm works diligently to help investors reclaim losses, enforce good governance, and hold errant corporate executives accountable for their actions. Investors interested in staying updated on the class action or other corporate governance issues can subscribe to receive alerts from Robbins LLP.

Given the current legal landscape, RCI Hospitality Holdings' shareholders may be at a crossroads, facing critical decisions that could affect their investments. Those concerned about their financial exposures should consider the implications of the lawsuit and their options moving forward. This situation emphasizes the importance of knowledge and available avenues for recourse in the face of corporate misconduct.