The action alleges that Defendants misled investors about the accuracy of RCI Hospitality’s financial reporting with the U.S. Securities and Exchange Commission (SEC), the effectiveness of the Company’s internal controls and procedures, and the Company’s compliance with local, state, and federal laws. Specifically, Defendants failed to disclose that they had engaged in tax fraud, committed bribery to cover up the tax fraud, and understated the legal risks facing the Company. These misrepresentations caused investors to purchase RCI Hospitality securities at artificially inflated prices, resulting in losses when the truth emerged.
On April 14, 2026, the Court appointed Paul Stroub and William J. Neylan III as Lead Plaintiffs and Saxena White as Lead Counsel.
Lead Plaintiffs filed a consolidated complaint on June 12, 2026. Defendants’ motion to dismiss the consolidated complaint is fully briefed and the parties await a ruling.
