RCI Hospitality Holdings (RICK) Shareholder Investigation: Lawsuit Filed

By Garrett J. Bradley, Esq. and Guillaume Buell, Esq.

Published on June 3, 2019

A class action lawsuit has been filed on behalf of investors of RCI Hospitality Holdings (NASDAQ: RICK). Shareholders who purchased at least 1,000 shares of RICK stock between February 14, 2018 and May 10, 2019, and are interested in learning about participating as a lead plaintiff in the lawsuit, are encouraged to contact the Thornton Law Firm at shareholder@tenlaw.com, or call 617-531-3917 to discuss their rights.

Investors interested in serving as a lead plaintiff have until July 22, 2019 to apply. The lawsuit alleges violations of the federal securities laws, and the class has not yet been certified. Until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.

According to the lawsuit, RCI made misleading statements, as well as failed to disclose material adverse facts about the Company’s business and operations. Specifically, RCI allegedly failed to disclose to investors that: (1) the Company engaged in numerous transactions with the CEO, including lending him significant sums of money; (2) these practices were reasonably likely to lead to regulatory scrutiny; (3) as a result of investigations into the Company’s governance, the Company would be unable to timely file its financial statements; and (4) Defendants’ positive statements about the Company’s business were misleading or lacked a reasonable basis. As the news about RCI’s alleged misstatements was revealed, RCI’s stock price fell over $3.00 a share.

If you purchased at least 1,000 shares of RCI Hospitality stock (NASDAQ: RICK) between February 14, 2018 and May 10, 2019, and are interested in learning about serving as a lead plaintiff, please contact the Thornton Law Firm’s shareholder rights team at shareholder@tenlaw.com, or call 617-531-3917. All communications will be treated in a confidential manner.

Thornton Law Firm’s securities attorneys specialize in representing individual shareholders and institutional investors in recovering damages caused by corporate wrongdoing or fraud. Its attorneys have decades of experience litigating securities cases in courts throughout the country and have a proven track record of recovering losses on behalf of shareholders.

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