#United States #New York #Securities Fraud #Pomerantz LLP #RCI Hospitality

Pomerantz Law Firm Takes Initiative to Investigate RCI Hospitality Holdings, Inc.

On September 28, 2025, Pomerantz LLP, a recognized leader in legal advocacy for investor rights, announced it is investigating potential securities fraud related to RCI Hospitality Holdings, Inc. (NASDAQ: RICK). The firm aims to represent investors impacted by these serious allegations. The probe follows an alarming report released by New York's Office of the Attorney General, highlighting that several top executives within RCI are facing indictment for reportedly bribing an auditor. This unethical maneuver was allegedly aimed at evading over $8 million in sales tax payments owed to both New York City and New York State from the period of 2010 to 2024.

The investigation carries significant implications, especially for investors who witnessed a dramatic decline in RCI's stock value following these revelations. Just days after the indictment announcement, the company's stock plummeted by $25.80—marking a staggering 24.83% drop within a mere two trading sessions, ultimately closing at $25.80 per share on September 17, 2025.

Legal Background and Consequences

Pomerantz LLP urges affected investors to get in touch to explore potential legal action. Their approach is informed by a commitment to uncover the truth behind any wrongdoing and secure justice for those adversely affected by RCI's decisions. The firm has a long-standing reputation in corporate litigation, particularly concerning securities class actions. Named after its founder, the late Abraham L. Pomerantz, who was a pioneering figure in this area, the firm has been advocating for investors for over 85 years, successfully recovering substantial damages on their behalf.

What Investors Should Know

This unfolding story underscores the critical importance of ethical practices within corporate governance. Investors of RCI Hospitality Holdings are rightfully concerned, as the recent scandal not only affects their financial investments but also raises questions about the company's operational integrity.

With the potential for class action lawsuits looming, Pomerantz LLP is positioned to initiate necessary legal proceedings if fraud or misconduct is substantiated. Investors are encouraged to act swiftly; by contacting Danielle Peyton at Pomerantz, they can be formally included in possible future actions against the company.

How to Get Involved

For investors feeling the impact of this situation, reaching out to Pomerantz might be a pivotal step. Investors can contact Danielle Peyton directly at [email protected] or by calling 646-581-9980, extension 7980, to discuss participation in this ongoing investigation.

Conclusion

The allegations against RCI Hospitality Holdings, Inc. serve as a vital reminder of the risks associated with corporate investments. The probe from Pomerantz LLP aims to ensure that justice is served and that shareholders are not left to suffer the consequences of corporate mismanagement and potential fraud. As the situation continues to develop, investors should remain vigilant about their rights and the importance of accountability in corporate practices.