According to the Complaint, RCI Hospitality Holdings, Inc. is a holding company that operates live adult entertainment and/or restaurant and bar operations through its subsidiaries. It has two principal reportable segments: Nightclubs and Bombshells.

The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges Defendants failed to disclose to investors: (1) that the Company engaged in numerous transactions with the CEO, including lending him significant sums of money; (2) that these practices were reasonably likely to lead to regulatory scrutiny of the Company; (3) that, as a result of investigations into the Company’s governance, the Company would be unable to timely file its financial statements; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.

On January 10, 2020, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. All future docketing was ordered to be done in the lead case 19-CV-01841.

Lead Plaintiff filed an amended Complaint on February 24, 2020. Defendants filed a Motion to Dismiss the amended Complaint on April 24. On March 31, 2021, the Court issued an Order denying Defendants' Motion to Dismiss.

On January 24, 2022, the parties notified the Court that they had reached an agreement-in-principle to settle the case. The parties entered into a Stipulation and Agreement of Settlement on April 14. On April 28, the Court granted preliminary approval of the Settlement. On August 12, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.

The Court issued an Order authorizing distribution of the Settlement funds on September 5, 2023.