NEW YORK, NY - September 23, 2025 (NEWMEDIAWIRE) - Kaplan Fox & Kilsheimer LLP announces that a class action lawsuit has been filed against RCI Hospitality Holdings, Inc. (“RCI” or the “Company”) (NASDAQ: RICK) on behalf of investors that purchased or otherwise acquired RCI securities between December 15, 2021 and September 16, 2025 (the “Class Period”).
If you purchased RCI securities during the Class Period and have suffered losses, you may CLICK HERE to contact us. You may also contact Kaplan Fox by emailing jcampisi@kaplanfox.com or by calling (212) 329-8571.
DEADLINE REMINDER: If you are a member of the proposed Class, you may move the court no later than November 20, 2025 to serve as a lead plaintiff for the purported class. If you have losses, we encourage you to contact us to learn more about the lead plaintiff process. You need not seek to become a lead plaintiff in order to share in any possible recovery.
RCI owns and operates night clubs offering adult entertainment, restaurants, and bar operations throughout the United States, including Rick’s Cabaret, Vivid Cabaret, and Hoops Cabaret and Sports Bar.
On September 16, 2025, the New York Attorney General (“NYAG”) announced indictments of top executives of RCI for “roles in a major, multimillion dollar criminal tax fraud and bribery scheme.” According to the NYAG, its investigation revealed that RCI executives allegedly “bribed an auditor with the New York Department of Taxation and Finance (DTF) to avoid paying over $8 million in sales taxes to New York City and the state from 2010 to 2024.” These alleged bribes included over a dozen “multi-day trips to Florida” with $5,000 per day of their in-house currency called “Dance Dollars” to be used at RCI night clubs. According to the NYAG, this alleged bribery scheme was “authorized, directed, and overseen by Eric Langan, RCI’s president and Chief Executive Officer, Bradley Chhay, RCI’s Chief Financial Officer, Ahmed Anakar, RCI’s Director of Operations, and Shaun Kevlin, a Regional Manager for RCI’s New York City strip clubs and later RCI’s Assistant Director of Nightclub Operations[.]” and resulted in favorable treatment for “at least six different sales tax audits spanning over a decade.” The charges in the indictment are merely allegations and the defendants are presumed innocent unless and until proven guilty in a court of law.
Following this news, the price of RCI stock fell $5.53 per share, over 16%, to close at $28.79 per share on September 16, 2025.
The securities class action complaint, filed in the Southern District of Texas, alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Defendants engaged in tax fraud; (ii) Defendants committed bribery to cover up the fact that they committed tax fraud; (iii) as a result, Defendants understated the legal risk facing the Company; and (iv) as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
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If you have any questions about this Notice, your rights, or your interests, please contact:
CONTACT:
Jeffrey P. Campisi
KAPLAN FOX & KILSHEIMER LLP
800 Third Avenue, 38th Floor
New York, New York 10022
(212) 329-8571
jcampisi@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
lking@kaplanfox.com
Contacting or submitting information to Kaplan Fox & Kilsheimer LLP does not create an attorney-client relationship, nor an obligation on the part of Kaplan Fox to retain you as a client.
https://www.kaplanfox.com/case/rci-hospitality-holdings-inc/
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