RCI Hospitality Holdings, Inc. Securities Litigation
On or around 04/24/2020 (Date of last review)
Filing Date: May 21, 2019
According to the Complaint, RCI 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. Lead Plaintiff filed an amended Complaint on February 24.
Company & Securities Information
Defendant: RCI Hospitality Holdings, Inc.
Headquarters: United States
Ticker Symbol: RICK
Company Market: NASDAQ
Market Status: Public (Listed)
About the Company & Securities Data
"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.
In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
First Identified Complaint
Ari Hoffman, et al. v. RCI Hospitality Holdings, Inc., et al.