RCI Hospitality Holdings, Inc. Securities Lawsuit Investigation

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against RCI Hospitality Holdings, Inc. (RICK).

If you purchased or held RCI Hospitality Holdings, Inc. securities and suffered losses, you may be eligible to join this securities investigation and seek compensation.

About RCI Hospitality Holdings, Inc.

RCI Hospitality Holdings, Inc. operates a network of adult entertainment clubs and related businesses across the United States. RCI Hospitality Holdings also manages various hospitality and real estate assets connected to its core operations.

The company’s leadership includes CEO Eric Langan and CFO Bradley Chhay, both of whom have played central roles in its financial and operational management.

Potential Concerns Under Investigation

Lawyers are investigating whether RCI Hospitality Holdings may have made misleading statements or omitted material information regarding its tax compliance and internal controls.

On Sept. 16, 2025, the New York Attorney General unsealed a 79-count indictment against RCI Hospitality Holdings and five of its executives. The indictment alleges a 13-year scheme involving bribery and tax fraud, specifically that CEO Eric Langan, CFO Bradley Chhay, and others bribed a New York tax auditor with cash, trips, and private dances at company clubs to secure favorable audit outcomes.

The indictment asserts that this alleged scheme allowed RCI Hospitality Holdings to evade over $8 million in New York City and State sales taxes on its “Dance Dollars” internal tip currency.

Prior to this disclosure, the company’s 2024 10-K filing only referenced a New York audit issue involving “possible entertainment benefits” to tax staff, without mentioning bribery or implicating senior executives. It also stated that only a “non-executive corporate employee was placed on administrative leave”.

Additionally, RCI Hospitality Holdings financial statements asserted that no material legal loss was expected, with management stating it was not aware of any “reasonable possibility” of a material loss from any claim.

Lawyers may examine whether these statements adequately disclosed the alleged true extent of the company’s exposure to legal and tax liabilities.

Following the public announcement of the indictment on Sept. 16, 2025, RCI Hospitality Holdings stock experienced a sharp decline. The share price fell approximately 5.5% that day, with some reports noting an intra-day drop of nearly 16%.

This translated to a loss of several dollars per share, resulting in a market capitalization decline estimated in the tens of millions of dollars, impacting investors who purchased shares during this period.

The investigation may focus on whether public statements, risk disclosures, and financial filings by RCI Hospitality Holdings during the relevant period provided investors with complete and accurate information, especially regarding the risks and liabilities associated with the alleged tax scheme and related audits.

Your Rights and Next Steps

Investors who held or purchased RCI Hospitality Holdings securities on Sept. 16, 2025, and suffered financial losses, may have the right to participate in this ongoing investigation. This is not yet a filed lawsuit, but an investigation that could lead to a securities class action.

Lawyers are ready to help investors understand their rights, gather relevant documentation, and assess eligibility for potential recovery.

If the investigation uncovers evidence of securities law violations, affected investors may be able to pursue compensation through a class action lawsuit. Investors are encouraged to act promptly, as securities investigations and any resulting legal actions are often time-sensitive.

You May Be Entitled to Compensation

If you held or purchased RCI Hospitality Holdings securities and experienced losses related to the events described above, you may be eligible to join this securities investigation. Time is often a critical factor in these cases, so consider taking action soon.

To find out if you qualify and to help protect your rights, complete the form below to join the investigation.