Grabar Law Office is investigating claims on behalf of shareholders of RCI Hospitality Holdings, Inc. (NASDAQ: RICK). The investigation concerns whether certain officers and directors breached the fiduciary duties they owed to the company.

RCI Hospitality Holdings, Inc. is a holding company that, through its subsidiaries, is engaged in businesses that offer live adult entertainment and/or dining experiences to its guests. The Company’s segments include Nightclubs and Bombshells. Its portfolio includes a variety of adult nightclub brands, formats and footprints that target different customers by providing quality entertainment environments. Its nightclub brands include Rick’s Cabaret, Tootsie’s Cabaret, Jaguars Club, Club Onyx, Diamond Cabaret, XTC Cabaret, Hoops Cabaret, STUDIO80, Cheetah HALLANDALE BEACH, HEARTBREAKERS, KAPPA MEN’S CLUB, TEMPTATIONS, DALLAS showclub, SILVER CITY CABARET, and Flight Club. Its Bombshells Restaurant & Bar is a military-themed, next generation, sports bar-casual dining restaurant brand with a focus on entertainment and fun. Bombshells attracts singles, couples, and families and features four major dayparts, such as lunch, happy hour, dinner, and late night.

As alleged in a recently filed federal securities fraud class action complaint, RCI Hospitality Holdings (NASDAQ: RICK), through certain of its officers, made materially false and/or misleading statements and/or failed to disclose that: (1) defendants engaged in tax fraud; (2) defendants committed bribery to cover up the fact that they committed tax fraud; (3) as a result, defendants understated the legal risk facing RCI Hospitality; and (4) as a result, defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.

Specifically, New York prosecutors announced a recently unsealed 79-count indictment against five top RCI executives, including president and CEO Eric Langan and controller Timothy Winata.

The indictments allege that the executives bribed an unnamed tax auditor with expensive lap dances for more than a decade to avoid paying $8 million in New York City sales tax and gave him free trips to Florida strip clubs.

In light of the criminal charges, it is alleged that RCI's public financial statements since at least 2021 have been  "materially false and misleading" because they failed to disclose RCI's role in the tax fraud and bribery scheme.

WHAT YOU CAN DO NOW: If you purchased RCI Hospitality Holdings, Inc. (NASDAQ: RICK), shares prior to December 15, 2021, and still hold shares today, you are encouraged to contact Joshua Grabar at jgrabar@grabarlaw.com, or call 267-507-6085.  You can seek corporate reforms, the return of funds back to the company, and a court approved incentive award at no cost to you whatsoever. Alternatively, if you purchased RCI Hospitality Holdings shares between December 15, 2021 and September 16, 2025, you can participate in the class action.